Instant Bank Transfer

A payment that moves money directly between bank accounts in real time, typically authorised by logging into the payer's bank.

Definition

An instant bank transfer, also called an account-to-account (A2A) payment, funds a deposit straight from the customer's bank account rather than through a card network. The customer usually authenticates inside their own bank, often via open-banking connectivity under frameworks such as PSD2, and the funds clear over a fast national rail (for example FPS in the UK, SEPA Instant in the euro area, or the schemes behind Interac, PIX, and Osko). Because the payment is a bank-authenticated push, it generally cannot be charged back like a card, settles quickly, and costs the merchant less, at the trade-off of narrower reach and dependence on bank support.

Worked example

At checkout the customer chooses to pay by bank, is redirected to their banking app to approve the amount, and the deposit is credited almost immediately.

Why it matters

For learners, this is the umbrella concept behind many named local schemes and the main alternative to card deposits. For professionals, A2A rails influence cost, chargeback exposure, and how affordability signals can be gathered at deposit time.

Related

Note: The underlying rails and open-banking rules differ by country; specifics like FPS or SEPA Instant apply only in their regions.