June 20, 2021
Business

Bank o f America speeds up business-to-consumer payments | PaymentsSource

Bank of America is streamlining payments between businesses and consumers to address a proliferation of use cases that require direct disbursements.

Called Pay to Card, the feature uses the details of noncredit payment cards associated with an account to expedite transactions, allowing direct deposits into payee’s consumer or small-business account.

By using debit card numbers, which are standardized, the bank is able to avoid using bank account numbers, which can vary in different countries and slow payments. The debit rail makes funds available within five minutes for domestic payouts and 30 minutes for cross-border payouts, Bank of America said. The service is available in about 170 countries in more than 120 currencies.

BofA envisions companies will find the product useful when paying contractors and gig economy workers, who have irregular payout requirements. Refunds, rebates,…

Read full article here: www.americanbanker.com