In the UK, you need an account number and sort code to send a bank transfer, and an IBAN and SWIFT code for international transfers.Īlthough bank transfers are popular, they are often less secure than other payment methods that’s because there is no card network in place to monitor the transaction, and therefore cannot be recalled if there is an error. Bank transfersīank transfers are popular amongst B2B transactions and larger payments such as wholesale orders. They require inputting a PIN, payments go through a card network and there is the additional layer of protection provided by the credit card company.Ĭredit cards are the second most popular payment method after debit cards, with UK residents completing 340 million transactions in 2019. Credit cards have a pre-approved limit and are later paid back by the customer (with interest) over time.Ĭredit cards allow customers to spread payments across time, as well as earn rewards and points for their spending.Īs for the merchant, credit cards operate similarly to debit cards. Credit CardsĬredit cards are funded by banks and building societies, with the customer paying with borrowed money rather than a bank account. This ensures purchases are not fraudulent and come from a verified bank account.Īccepting debit card payments usually requires using a card machine, also known as a POS machine. Not only do customers have to input a personalised PIN code, but each payment must go through a card network such as Visa and Mastercard. The biggest benefit of using debit cards is the extra layer of security when completing a payment. In the UK, 98% of the population owns a debit card, and it’s the most popular payment method for both online and offline purchases.
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