Online Bank Transfer
Online bank transfer is a virtual deposit of money from one bank account to another used by millions of customers worldwide. Online bank transfers are traditional payment methods, yet shoppers can make instant payments.
Online bank transfer integration provides an open banking platform through a single API, through which shoppers can choose their bank account to make payments on your webshop. Shoppers pay for goods and services in an online shop through real-time bank transfers. Shoppers enjoy an absolute payment experience with complete control over their transactions.
Key Information
| Payment Type | ONLINE_BANK_TRANSFER |
| Type | ONLINE-BANK-TRANSFER |
| Supported Countries | 
Germany (DE)
Austria (AT)
Estonia (EE)
Finland (FI)
France (FR)
Italy (IT)
Lithuania (LT)
Netherlands (NL)
Poland (PL)
Portugal (PT)
Spain (ES)
Sweden (SE)
|
| Supported Currencies | EUR |
| Authorization | No |
| Transaction Refund | Yes |
| Tokenization | No |
| Recurring | No |
| Transmission of the customer number | No |
Try it yourself
Before integrating online bank transfer to your webshop, do you want to simulate the checkout flow? Give the online bank transfer demo a try to view how online bank transfer checkout handles payment responses. Click Pay Now to get started. Refer to /resources/testing for the test data required for the mock transaction.
How does online bank transfer work?
- Shoppers choose online bank transfer as their preferred payment method on the checkout page.
- They get redirected to the third party environment where bank names are displayed based on the shoppers’ location.
- Shoppers choose their bank name and log in with their banking credentials. A Two-factor authentication may be required to confirm the user’s identity
- After login, shoppers choose the bank account name and proceed with the transaction.
- Once payment is complete, shoppers get routed to the online shop.
How Online Bank Transfer Handles Transactions?
When a customer initiates a payment via Online Bank Transfer, one of the following processes occurs through our payment partner:
- Status Code - 100: The payment is confirmed immediately, and the transaction is marked as completed.
- Status Code - 75: If the payment is not confirmed instantly, a pending status is returned in both the initial payment response and the webhook (type: PAYMENT). - If confirmed within 48 hours: The transaction will be confirmed by our partner, and we will send a webhook with type TRANSACTION_UPDATE and status code 100.- If not confirmed or rejected: The transaction will be canceled by our partner, and we will send a webhook with type TRANSACTION_CANCEL and status code 103.
- The payment may be rejected by our partner for various reasons (e.g., error code 400010 - Authentication failed with the financial institution.). For more error codes, refer here.
Does Online Bank Transfer support chargebacks?
While direct chargebacks are not possible, the Online Bank Transfer process may occasionally result in unsettled payments, even after a successful transaction. These cases are categorized under the payment type REVERSAL, which marks a debit in the account balance.
Common reasons for unsettled payments:
- Low Account Balance: Some banks initially process payments even when the account lacks sufficient funds but later fail to complete the transaction.
- User Cancellation: Certain banks allow customers to immediately cancel transactions after initiating the payment.
- Bank-Specific Vulnerabilities: Fraudsters may exploit banking loopholes, such as withdrawing funds before the payment is fully processed.
Common reasons for unsettled payments:
- Low Account Balance: Some banks initially process payments even when the account lacks sufficient funds but later fail to complete the transaction.
- User Cancellation: Certain banks allow customers to immediately cancel transactions after initiating the payment.
- Bank-Specific Vulnerabilities: Fraudsters may exploit banking loopholes, such as withdrawing funds before the payment is fully processed.
Handling unsettled payments:
Unsettled payments are typically sent to dunning procedures, where:
- Customers may receive payment reminders if this feature is activated.
- If the payment remains unsettled, the case may be escalated to collection agencies for recovery.
Successful recovery & crediting merchants:
If a successful payment recovery occurs or the end-customer manually completes the payment, a new transaction with the payment type ONLINE_TRANSFER_CREDIT is created. This credit is linked to the original transaction via event.parent_tid and includes important references, such as the Order Number (transaction.order_no) and other relevant details. Additionally, transactions using this payment method will be notified via webhook notification, ensuring your system stays informed.
Can merchants receive credit for failed transactions?
Yes, in certain cases, merchants may receive credit for a failed transaction, including:
- Manual Fund Transfers: Customers manually transfer the funds after an initial payment failure.
- Delayed Payment Completion: Customers return and complete the payment after a long delay (e.g., exceeding 40 minutes).
- Banking Network Issues: Technical or network-related delays prevent a success message from being transmitted, even though the payment is eventually processed.
In such cases, Novalnet credits the merchant under ONLINE_TRANSFER_CREDIT and sends a webhook notification regarding the incoming funds. This credit is linked to the original transaction via event.parent_tid and includes important references, such as the Order Number (transaction.order_no) and other relevant details.
How do you wish to integrate online bank transfer?
Setup online bank transfer payment method integration in your webshop using any of the following integration methods based on your business model. Previously, you must have enabled the online bank transfer payment method in the Novalnet Admin Portal.
Transaction Result
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