Open banking payment links for trades: fees, pros, and when to use
Open banking payments can reduce card fees and speed up cash flow. Here is how they work and when trades should use them.
Open banking payment links for trades: fees, pros, and when to use
Card payments are convenient but expensive. Bank transfers are cheap but slow and error-prone. Open banking sits in the middle: fast, traceable, and usually lower cost.
How open banking payment links work
- You send a payment link (SMS or email).
- The customer selects their bank.
- They approve the payment in their bank app or web login.
- Funds move via instant bank transfer rails.
Pros for trade businesses
- Lower fees than many card processors (check your provider).
- Fewer chargebacks because payments are bank authorised.
- Faster settlement than manual bank transfers.
- Clear payment reference tied to the invoice.
Cons to consider
- Not all customers are familiar with the flow.
- Some business banks have stricter limits.
- You still need a fallback (card or bank transfer) for edge cases.
When to use open banking links
- Large invoices where card fees would be painful.
- B2B customers who prefer bank-to-bank payments.
- Final balance after a deposit was taken by card.
Quick fee comparison (example format)
Use this structure with your real provider fees:
- Card: 1.4% + 20p on GBP 2,000 = GBP 28.20
- Open banking: 0.5% on GBP 2,000 = GBP 10.00
- Bank transfer: GBP 0 but slower and more admin
Scripts you can send
SMS: "Hi [name], here is your payment link for invoice [number]. You can pay by bank transfer using open banking in under a minute: [link]."
Email: "We have added an instant bank payment option to reduce fees and speed up confirmation. Use the link below to approve the payment in your banking app."
Toolfy tip
If you use Toolfy payment links, include open banking as an option when available so customers can choose the cheapest, fastest method. Then track which method clears fastest and make that your default.
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Frequently Asked Questions
Are open banking payments cheaper than card payments?
Do customers need to install an app?
Need this workflow in Toolfy?
Spin up the exact checklist, scripts, and automations from this article inside your workspace.
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