Open banking payments move money directly between bank accounts, with the customer's approval and no card details. A one-off is a pay by bank payment; a recurring arrangement is a variable recurring payment (VRP). This page explains the concepts; each section links to the method page under payments where we cover the detail, pricing and setup.
Pay by bank (single payments)
A pay by bank payment is a single, immediate transfer from the customer's account, set up through open banking payment initiation. The customer approves it at their own bank, with the payee and amount already filled in, and the money moves directly, usually in near real time, with no card number entered anywhere. For a business it means fast settlement, fewer card fees and less fraud surface than a manual bank transfer, because the details are pre-populated.
Amount and payee are pre-filled. No card details, no typing account numbers.
Approve once with Face ID or your passcode. Your login is never shared.
Read the pay by bank method page →
Variable recurring payments and consent parameters
A variable recurring payment is a smarter standing instruction. Instead of agreeing one fixed amount, the customer gives a consent with parameters: a maximum per payment, a maximum per period, and often a date range or purpose. Within those limits the business can collect varying amounts without asking the customer to approve each one. That makes VRP well suited to usage-based billing, flexible repayments and topping up, with the customer keeping clear, enforceable limits.
Sweeping vs commercial VRP (cVRP)
VRP comes in two flavours by where the money goes. Sweeping moves money between the customer's own accounts, for example sweeping a surplus into savings or paying down a loan or overdraft; it has been available and is a protected use case. Commercial VRP (cVRP) pays a third party, a business, and is the one that opens up account-to-account alternatives to Direct Debit and card-on-file. Commercial VRP went live in the UK through the UK Payments Initiative scheme, with Wave 1 launching on 2 June 2026 for regulated and lower-risk sectors, and broader e-commerce planned later. See the standards tracker for the current status.
Read the commercial VRP method page →
Refunds and payment status
An open banking payment reports a clear status: initiated, accepted, completed or rejected, so you know where each one stands and can act on failures. Refunds are handled as a separate outbound payment rather than a card-style reversal, which keeps the flow of funds explicit. For a business this means reconciliation is cleaner (every payment has a reference and a status) but you should design a refund process rather than assume a chargeback mechanism.
Where it fits against Direct Debit and cards
Open banking payments do not replace everything; they sit alongside Direct Debit and cards, each suited to different jobs. Direct Debit remains strong for predictable, scheduled collection with its established guarantee; cards suit low-value, instant, consumer purchases with familiar protections; account-to-account suits fast settlement, higher values, and flexible recurring collection without card fees. The right answer is usually a mix, orchestrated by need. Our which payment method page compares them directly.
Direct Debit method page → Cards method page →
From the data consumer's side
Think in jobs, not rails. Decide what you are collecting (a one-off, a flexible recurring amount, a scheduled fixed amount) and let that choose the method, rather than defaulting to cards because they are familiar. The payoff of account-to-account is lower cost and faster settlement; the trade-off is designing for a different refund and dispute model. Credit Canary orchestrates all of these together, so you can pick per use case rather than committing to one rail.
How Credit Canary does it
Credit Canary provides open banking payments through a regulated provider and orchestrates them alongside Direct Debit and card, so you can collect by the method that fits each case and reconcile them in one place, with income and affordability from the same platform.
Common questions
What is pay by bank?
Pay by bank is a single, immediate account-to-account payment made through open banking. The customer approves it at their own bank, money moves directly from their account, and there are no card details. It usually settles in near real time.
What is a variable recurring payment (VRP)?
A VRP is a consent that lets a business take payments of varying amounts within limits the customer sets, such as a maximum per payment and per period. It is a flexible, account-to-account alternative to a Direct Debit or a card on file.
What is the difference between sweeping and commercial VRP?
Sweeping moves money between a customer's own accounts, such as to savings or to repay a loan. Commercial VRP (cVRP) pays a business. Commercial VRP went live in the UK via the UK Payments Initiative scheme, with Wave 1 on 2 June 2026.
Is pay by bank cheaper than cards?
Account-to-account payments avoid card scheme and interchange fees, so they are often cheaper, especially at higher values. The exact saving depends on your volumes and mix, which is why pricing is quoted on volume.
Related pages
Primary sources
- openbanking.org.uk, variable recurring payments (VRPs/cVRPs) (checked 15 Oct 2026).
- openbanking.org.uk, VRPs and sweeping (checked 14 Oct 2026).
Credit Canary provides open banking through fumopay limited, an FCA-authorised account information and payment initiation service provider (FRN 925689), of which Credit Canary is an agent. Underlying bank connectivity is also provided by fumopay limited. This page is an evergreen reference and is reviewed and dated; it is not regulatory, legal or financial advice.