Why High-Risk Merchants Are Choosing Pay by Bank

If high processing fees and security concerns are limiting your business, Pay by Bank could be the solution. The Pay by Bank payment method offers high-risk merchants enhanced security, significantly lower transaction costs, and expanded reach to customers who prefer direct bank transfers.

Pay by Bank is a checkout solution that allows your customers to make transactions directly from their bank accounts, instead of making a traditional card payment. However, before offering it as a payment option for your customers, it is important to determine whether Pay by Bank can help your business.


Is Pay by Bank Right for Your Business? Assessing its potential for high-risk industries


  1. Consider the nature of your business. Pay by Bank can benefit high-risk merchants in industries such as digital adult media, online CBD sales, travel, and online dating. The high-risk nature of these industries exposes them to increased fraud and chargeback rates with credit card transactions. Pay by Bank is a direct link between your customer’s bank account and yours, allowing for transactions protected by secure banking platforms. If your business falls into a high-risk category, Pay by Bank may be a suitable option for you.
  2. Understand your customer base. Pay by Bank may be more appealing to customers who don’t have access to cards or prefer to make direct bank transfers. It is gaining popularity in Europe and the United Kingdom. For example, 90% of consumers in the United Kingdom are already familiar with account-to-account transfers, and prefer it due to the security, convenience, and instant nature of the transaction. Pay by Bank is especially popular with younger, tech-savvy consumers in the 18-29 age category. If your target audience includes individuals who are more likely to choose this payment method, Pay by Bank can help you reach more potential customers.
  3. Review the rate of chargebacks and fraud for your business. Pay by Bank transactions occur on secure bank platforms, with money transferring from the customer’s account. It is a directly link between customers and merchants, which helps reduce the potential for chargebacks and fraud.


By carefully considering these factors and conducting a thorough analysis of your business, you can determine if Pay by Bank is the right payment solution for you. It is crucial to choose a payment method that not only meets the needs of your business, but also provides a secure and reliable platform for your customers.

Benefits of the Pay by Bank Solution for High-Risk Businesses

Five ways that Pay by Bank can help high-risk merchants are:

  1. Enhanced security: Pay by Bank transactions offer a high level of security as they are directly linked to the customer’s bank account. This reduces the risk of fraudulent activities and provides peace of mind to both merchants and customers.
  2. Lower transaction costs: Pay by Bank transactions often have lower transaction costs compared to other payment methods, such as credit card payments. This can help high-risk merchants reduce their operational expenses and increase their profit margins.
  3. Faster settlements: Pay by Bank transactions are usually settled faster compared to other payment methods. This means that high-risk merchants can receive their funds more quickly, improving cash flow and financial stability.
  4. Increased customer trust: Pay by Bank is a trusted payment method for many customers, especially those who prefer not to share their credit card information online. By offering Pay by Bank at checkout, high-risk merchants can build trust with their customers and attract a wider customer base.
  5. Expanded customer reach: Pay by Bank allows high-risk merchants to reach a broader customer base by offering a payment method that is known and preferred by many customers. This can lead to increased sales and business growth.


Open banking solutions, such as Pay by Bank can support high-risk merchants to optimize their payment processes, improve financial stability, and enhance the overall customer experience.

Challenges Faced by High-Risk Merchants

High-risk merchants face a unique set of challenges that can impact their ability to operate and succeed in their respective industries. It’s important to understand these hurdles and how Pay by Bank can offer a lifeline to addressing them. Major challenges include:

  • High chargeback ratios: High-risk businesses often experience higher chargeback ratios compared to businesses in low-risk industries. Chargebacks occur when customers dispute a transaction and request a refund from their bank or credit card company. High chargeback ratios can result in financial losses and can also lead to penalties or account closures.
  • Increased risk of fraud: High-risk industries attract fraudsters who exploit vulnerabilities in payment systems. High-risk merchants need to implement robust fraud prevention measures to protect their businesses and their customers’ sensitive information. This can include using advanced fraud detection tools, adopting secure payment gateways, and implementing stringent identity verification processes.
  • Legal and regulatory issues: High-risk industries are often subject to complex legal and regulatory frameworks. High-risk merchants need to stay updated with the evolving regulations in their respective industries and ensure compliance to avoid legal consequences or penalties.
  • Limited access to traditional banking services: Due to the increased risk associated with their businesses, high-risk merchants may face challenges in obtaining banking services from traditional financial institutions. This can include difficulties in opening merchant accounts, higher processing fees, and stricter underwriting requirements.


Pay by Bank can support high-risk merchants to proactively address these challenges, while also increasing customer reach and ensuring a smooth checkout experience.

Ready to learn more? Discover Vendo’s Pay by Bank payment solution and how your business can save up to 75% on transaction costs, while expanding your customer base in the European market. Contact us today.

About Vendo: Vendo offers comprehensive payment processing services to e-commerce merchants, including those in high-risk industries. Our innovative, AI-powered tools offer merchants simple, secure, and seamless payment solutions, along with expert customer support from integration to end-user concerns. Our expert team works 24/7 to shape your vision into reality.