Bank-to-Bank Payments: Overview, Best Practices & Limitations

Paystand’s Bank-to-Bank payment method allows payers to complete transactions securely and quickly by logging into their bank account during checkout. This method is free to use and offers a seamless experience when properly configured and supported by the payer’s financial institution.

How It Works

  1. Bank Login Option: When enabled by the merchant, payers will see a Bank Login button on the Paystand checkout page.
  2. Account Verification: The system uses the payer’s bank login credentials to validate that the account exists and verify funds availability.
  3. Bank Login Flow: Depending on the bank:
    -Payers may log in within the checkout UI, or
    -Be redirected to a secure embedded login page from their bank.
  4. Authentication: Payers must enter their username and password and complete any multi-factor authentication (MFA) required by their bank.
  5. Payment Confirmation: After a successful login, the payer selects the bank account they want to use, and an ACH pull request is initiated to complete the payment.

Best Practices for Payers

Use a supported bank: Paystand currently supports 590+ institutions, including major U.S. banks.
Have bank credentials ready: Ensure the username, password, and MFA device (e.g., phone for SMS code) are available during checkout.
Use the account holder’s credentials: Only the account holder can complete login and authentication successfully.
Confirm account access: Log in to your bank separately ahead of time to confirm it’s active and not locked.

Limitations to Be Aware Of

Login failure risks: If the payer enters incorrect credentials or fails MFA, the payment will not go through.
Bank login not universal: Some smaller banks and credit unions may not be supported.
Payer abandonment: Roughly 12% of payers abandon the flow—most commonly because:

  • They don’t have credentials handy
  • The correct account isn’t available for selection

Payer-side errors: 91% of all bank login issues are due to incorrect passwords, MFA failures, or locked accounts.


Troubleshooting Tips

  • If your bank account isn't shown, try using another login or a different supported payment method.
  • If your session times out, reattempt the login from the beginning.
  • For persistent issues, contact your bank to ensure your login credentials and MFA are working correctly.

Need Help?
If you’re experiencing issues with the Bank-to-Bank method, please reach out to Support for further assistance or to choose an alternative payment option.

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