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For decades, credit and debit cards have been the default for online payments. They are familiar, widely accepted, and deeply entrenched in markets like the US and UK.

But things are changing. Rising transaction fees, fraud risks, and lengthy checkout experiences are pushing merchants to look for smarter options. That is where Open Banking (Pay by Bank) comes in, a direct, secure way for the customers to pay.

The question is not just “how do cards compare to Open Banking?” but “which one better supports the future of your business?”

Let’s break it down.

1. The cost factor

Card fees add up fast. With 2-4% taken by acquirers, issuers, schemes, and processors, merchants lose a meaningful chunk of revenue on every transaction.

With Open Banking, funds move directly from the customer’s bank to yours. No card networks, fewer intermediaries, lower costs.

Open Banking = fewer fees, higher margins.

2. Speed and settlement

Card settlements can take days. That means waiting on your money.

Open Banking payments are often instant or same-day, putting cash flow back in your control.

Open Banking = faster access to your funds.

3. Fraud and chargebacks

Cards are vulnerable to stolen credentials and chargeback abuse, which creates a costly headache.

Open Banking payments are confirmed through strong customer authentication (SCA), like biometrics or banking apps. Once authorized, they are final.

Open Banking = lower fraud risk and no chargebacks.

4. User experience at checkout

Typing card numbers, CVVs, billing addresses, and going through 3D Secure is not exactly mobile-friendly.

With Open Banking, customers simply select their bank and approve in a few taps. Returning users? Even faster.

Open Banking = simpler, faster, mobile-first checkout.

5. Coverage and adoption

Cards dominate in the US. But across Europe, local methods, including bank transfers, have long been preferred.

Open Banking adoption is accelerating, driven by regulation, technology, and consumer demand.

Open Banking = future-ready and increasingly expected.

So, cards or Open Banking?

It is not always about replacing one with the other. Merchants thrive when they offer choice.

But if your goals are to:

• Cut transaction costs
  
  
• Speed up settlement
  
  
• Eliminate chargebacks
  
  
• Improve customer experience
  
  
• Expand into Europe with confidence
  
  

…then Open Banking deserves a central place at your checkout.

And with our product DPMax Pay by Bank offering 100% European bank coverage and smart routing, you do not just add a payment method, you add reliability.

Cards served their purpose. But the way we pay is evolving. Open Banking is not a trend, it is the future of online payments.

The real question is: why have you not added it yet?

👉 Ready to start? sales@alternativepayments.com

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