Why Pay-by-Bank Is Best for Fraud Prevention

Ditch fraud-prone card payments.
With Wallid’s Pay-by-Bank, every transaction is bank-authenticated, eliminating chargebacks and fake users — instantly.

Ecommerce fraud is expensive — not just in revenue loss, but in lost trust and higher processing fees.
Wallid Pay-by-Bank is designed to stop fraud at the source — by removing the tools fraudsters rely on, like stolen cards and spoofed identities.

Let’s dive into why it’s the most secure way to pay.

What Is Pay-by-Bank for Fraud Prevention?

Pay-by-Bank uses secure open banking APIs to initiate payments directly from a customer’s bank account — authenticated via their banking app with SCA (Strong Customer Authentication).
  • No card numbers to steal

  • Bank-level security

  • Verified identity via biometric login

  • Zero chargeback liability

  • PSD2 and GDPR compliant

Why Pay-by-Bank Beats Traditional Payment Methods
  • No Card, No Problem
    Card fraud relies on stolen numbers and weak verification. Pay-by-Bank removes card details completely — there’s nothing for fraudsters to steal or spoof.
  • Biometric-Backed Identity
    Transactions are verified using fingerprint or facial recognition in your customer’s banking app — making identity theft nearly impossible.
  • No Chargebacks
    Since Pay-by-Bank is a push payment (initiated by the customer), chargebacks don’t apply.
    That means:
    ❌ No friendly fraud
    ❌ No abuse of refund systems
    ✅ Lower operational costs and disputes
  • Real-Time Risk Reduction
    Because the bank verifies identity instantly, you block fake accounts and stolen credentials before they reach checkout.
  • Secure by Default
    Wallid Pay-by-Bank is built on open banking and SCA compliance — no need to worry about PCI DSS or extra fraud screening layers.

Fraud Prevention Comparison

MethodFraud RiskChargebacksAuthenticationСomplianceSetup Effort
Card PaymentHighCommonWeak (CVV)PCI DSSMedium
PayPalMediumHighEmail LoginModerate Medium
Bank Transfer (Manual) LowNoneManual Entry HighHigh
Pay-by-Bank (Wallid)Very LowNoneBiometric + SCAPSD2 + GDPRLow
Conclusion: Why Switch to Pay-by-Bank?
  • If you're still relying on card payments, you’re exposed to
    ❌ Stolen credentials
    ❌ Chargebacks
    ❌ Compliance headaches
  • Wallid Pay-by-Bank offers
    ✅ Verified, bank-authenticated identity
    ✅ No card data to steal
    ✅ No chargebacks
    ✅ Instant, frictionless checkout

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Frequently Asked Questions
Yes. Every payment is SCA-compliant and verified via the customer’s bank with biometric login.
Absolutely. Customers confirm payment in their banking app with Face ID or fingerprint.
Yes. Wallid Pay-by-Bank can run in parallel with Shopify Payments, PayPal, or Klarna.
Fallback to card or PayPal can be triggered if a user’s bank isn’t reachable.
Frequently Asked Questions
Yes. Every payment is SCA-compliant and verified via the customer’s bank with biometric login.
Absolutely. Customers confirm payment in their banking app with Face ID or fingerprint.
Yes. Wallid Pay-by-Bank can run in parallel with Shopify Payments, PayPal, or Klarna.
Fallback to card or PayPal can be triggered if a user’s bank isn’t reachable.