Pay by Bank does not support chargebacks, but APP regulations do apply...
Pay by Bank payments cannot be charged back. Each payment is authorised directly in the customer’s banking app using Face ID, fingerprint or passcode, which means the bank verifies the transaction in real time. This makes Pay by Bank highly secure and protects your business from chargeback-related losses.
Merchants using Pay by Bank are subject to the Authorised Push Payment (APP) reimbursement rules against misrepresentation. Under the UK’s APP framework, if a customer is tricked into sending a payment due to fraud or misrepresentation, their bank may reimburse them and recover the funds from the receiving payment service provider. As a result, merchants must ensure that the business name, payment purpose, and any supporting information shown during the payment flow accurately reflect the underlying transaction. Clear branding, transparent communication with customers, and matching bank account names help reduce the risk of APP claims and ensure compliance with the reimbursement rules.
What about chargebacks for card payments?
For card transactions, standard card-scheme rules apply. This means customers may raise a dispute with their card issuer. If this happens, we’ll notify you and guide you through the process. Card chargeback disputes will be handled via our card acquirer, Rapyd Payments Limited, and processed by the consumer's bank.
How should disputes be handled?
We encourage merchants and customers to resolve payment-related issues through clear communication wherever possible.