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).
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No card numbers to steal
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Bank-level security
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Verified identity via biometric login
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Zero chargeback liability
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PSD2 and GDPR compliant
Why Pay-by-Bank Beats Traditional Payment Methods
- No Card, No ProblemCard 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 IdentityTransactions are verified using fingerprint or facial recognition in your customer’s banking app — making identity theft nearly impossible.
- No ChargebacksSince 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 ReductionBecause the bank verifies identity instantly, you block fake accounts and stolen credentials before they reach checkout.
- Secure by DefaultWallid 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
| Method | Fraud Risk | Chargebacks | Authentication | Сompliance | Setup Effort |
|---|---|---|---|---|---|
| Card Payment | High | Common | Weak (CVV) | PCI DSS | Medium |
| PayPal | Medium | High | Email Login | Moderate | Medium |
| Bank Transfer (Manual) | Low | None | Manual Entry | High | High |
| Pay-by-Bank (Wallid) | Very Low | None | Biometric + SCA | PSD2 + GDPR | Low |
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
What Our Clients Say About Us
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.