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Does my organisation need to be connected directly to NPP in order to use PayTo?
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How long does it take for a payment to settle in my bank account?
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Will my customers incur any fees when completing a payment through PayTo?
What is PayTo?
PayTo is a new digital way for merchants and businesses to initiate real-time payments from customer bank accounts mandated by the New Payments Platform (NPP).
Is PayTo the same as Osko?
PayTo is often summarised as ‘Osko-but-for-business’ and that’s partially true. The difference is Osko is an infrastructure that enables an individual to send money to another individual without the need for a financial intermediary. This is a push-payment. With PayTo, the infrastructure allows a merchant to ‘pull’ money from an account with the account-holder’s consent.
Does my organisation need to be connected directly to NPP in order to use PayTo?
You don’t need direct access to the New Payments Platform in order to use PayTo. All you need is an account at one of the many participating organisations that offer NPP services to their clients, such as GoCardless.
Do I need to download any additional apps to use PayTo?
There is no need for any additional app download to use PayTo. Instead, when a payer needs to authorise a request for a merchant to take payments from them via PayTo, they’ll be redirected straight to their existing banking app.
How safe is PayTo?
PayTo is a highly secure transaction and cannot bypass the consumer’s bank account or grant merchants access or visibility into accounts. Approvals for transactions using the PayTo infrastructure will be done straight through the user’s banking application, not the merchant’s. The customer will complete a one-off authorisation with the merchant to pull funds from their nominated account. Then they will receive a notification from their bank asking if they would like to approve the transaction.
What are the benefits of PayTo?
There are 5 key benefits on top of PayTo’s real-time element
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Real-time confirmation of payment success - no more waiting until D+2 (using D as charge date) to know if a payment has been successfully collected, as with BECS AU
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Proof of bank account ownership - your customers must log into online / mobile banking to authorise payments
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Reduced fraud, chargebacks, and payment failures - payments are subject to the same fraud and security protections used by banks for internet and mobile banking transactions
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ISO messaging standards - Payment messages can support more information, including up to 280 characters of structured or unstructured data
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Payments can be made to/from a PayID, rather than traditional bank account details
Overall for your customers, using PayTo is easy and gives them more control over payments from their bank account. Customers can see their PayTo agreements in their internet or mobile banking app, so they’ll know when payments will be debited from their account, and they can manage them there too. This is in contrast with BECS AU for example, where there is little to no visibility within banking channels of upcoming payments, and no functionality to manage payment agreements.
Is PayTo ready in the market?
Sort of - it depends who your customers are banking with.
One of PayTo’s main features is that customers must authorise payment agreements via their online banking channels. Banks were mandated by NPPA to build out the relevant customer authorisation flows by July 2022, but there have been delays which means that many banks will be rolling out PayTo over 2023.
Check out our live bank readiness page to stay up to date.
Where can I find PayTo logos and materials?
PayTo’s marketing kit guidelines can be found here.
What if I need to change the terms of a PayTo agreement?
Some changes to PayTo agreement will need authorisation from your customers, and some won’t.
Changes that do need customer authorisation:
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Payment frequency
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Payment amount
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Max payment amount
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First payment amount
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Last payment amount
Changes that don’t need customer authorisation:
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Updating the mandate description
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Updating the initiating party
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If you are on our standard package, GoCardless will be shown on the PayTo agreement as the initiating party. For merchants on all other packages, your company will be shown as the initiating party. If you upgrade from standard to Pro and the initiating party changes as a result – no customer authorisation is required
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How do refunds work with PayTo?
With GoCardless you have the added benefit of being able to process refunds for your PayTo payments. We use BECS credit for refunds. They will be processed in the same way to how BECS refunds are handled – batched and paid out once a day. This means they won't be ‘instant’, but will be processed on the same day or the next day.
What are some common use cases of PayTo?
There are many different use cases that PayTo is great for, as it supports both – instant one-off and recurring payments.
You can use it to collect
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recurring subscriptions payments,
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one-off and recurring invoices,
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eCommerce and in-app payments,
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funding for other payment options such as digital wallets,
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as a replacement for the card-on-file model,
And many other situations where you need instant payment confirmation, great customer experience and money in the bank sooner. If you would like to explore how PayTo can help your business, get in touch with our team here.
How much will PayTo cost?
If you use GoCardless on a Standard, Advanced, or Pro plan, PayTo transactions are included in the transaction fee (which varies depending on the plan you’re on).
Depending on your location, PayTo may be charged as an international payment.
If you are on Custom Pricing, please get in touch with us at hello@gocardless.com or reach out to your Customer Success Manager.
How long does it take for a payment to settle in my bank account?
PayTo settlement times are up to 8x faster than the traditional BECS timings. One main advantage of PayTo is that it offers almost real-time payment confirmation. This means that if a payment is confirmed before 8-10 pm AU time, (depending on the time of year) on a given day between Monday-Friday, funds will be received the next business day. If a payment is confirmed after this, funds will be received two business days later.
What is the maximum limit per transaction when using PayTo?
The maximum limit is $25,000 per transaction. Should you wish to increase the limit, please reach out to help@gocardless.com so that we can assist.
Will my customers incur any fees when completing a payment through PayTo?
Unlike credit card payments, there are no transaction fees for consumers paying via PayTo.
How can my organisation set up PayTo?
PayTo can be accessed by businesses in 2 ways (all options are minimal additional work):
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Via GoCardless with an API integration. For more information please refer to this section (click here)
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Through one of our partners
Who can I contact for support?
Please get in touch with our specialist team who can help you with any questions you have about this feature by reaching out to our Support team.