Yes, for the payment itself: bank transfers and open banking payments are secure, and open banking removes the risk of typing the wrong details. The difference is what happens if you're tricked into paying a fraudster. A bank transfer has no chargeback and no section 75 protection, so the APP fraud reimbursement rules are your only route back, and those cover individuals, microenterprises and charities but not larger businesses.
In this article
The short version
- Bank transfers and open banking have no chargeback or section 75 protection.
- APP fraud reimbursement covers individuals, microenterprises and charities, up to £85,000.
- Larger businesses aren't covered, so checks before paying matter most.
- Verify any change of bank details by phone on a number you already hold.
- Pay by bank removes the risk of mistyped or doctored bank details.
How the protection compares with paying by card
The three main ways of paying an invoice come with different safety nets if something goes wrong.
| How you pay | What protects you |
|---|---|
| Debit or credit card | Chargeback: your card provider can ask the seller's bank to refund you |
| Credit card, £100 to £30,000 | Section 75 of the Consumer Credit Act as well, which makes the card provider jointly liable for a purchase (for consumers) |
| Bank transfer or open banking | The APP fraud reimbursement rules, and nothing else |
A card payment can be pulled back through the card scheme. A bank transfer can't, because once you've authorised a Faster Payment it can't be cancelled or reversed by a scheme rule.
Open banking (pay by bank) sends money over the same Faster Payments system, so the protection is the same as a manual transfer. What's different is how hard it is to get wrong. With a pay by bank link, the payee's details and the reference come from the business you're paying, and you approve the payment inside your own banking app, so there's nothing to mistype and no account number for a fraudster to swap.
What the APP reimbursement rules cover
Authorised push payment (APP) fraud is when you're tricked into sending money yourself, for example by a fake invoice or an email claiming a supplier has changed bank. Since 7 October 2024, victims of APP fraud on Faster Payments and CHAPS have had a right to reimbursement, with the sending and receiving banks sharing the cost.
The main terms:
- The most you can claim is £85,000.
- Your bank can deduct an excess of up to £100, though not for vulnerable customers.
- You need to claim within 13 months of the last payment to the fraudster.
- The bank should reimburse you within five business days, or up to 35 if it needs to investigate.
You won't be reimbursed if you were part of the fraud, or if you were grossly negligent, which the regulator describes as a high bar.
The rules cover individuals, microenterprises and charities. A microenterprise is broadly a business with fewer than ten staff and a small turnover or balance sheet. If your business is bigger than that, a payment your team sends to a fraudster's account has no reimbursement right under these rules, and getting it back depends on your bank's goodwill and whether the receiving bank can freeze the money in time.
APP fraud losses went up in 2025: UK Finance reported £576.4m, a rise of 19% on 2024.
How to protect your business when you pay
Because a transfer can't be pulled back, your protection comes from the checks you make before the money leaves.
- Treat any change of a supplier's bank details as suspect. Confirm it by phoning a number you already had on file, never one from the email asking for the change.
- Read the Confirmation of Payee result. If a supplier you've paid for years suddenly comes back as no match, call them before you go ahead.
- Pay through the supplier's own payment link where they offer one, so the details come from them and not from a document a fraudster could edit.
- For a large payment to a new supplier, consider paying by card, which gives you chargeback rights a transfer doesn't.
- Have a second person approve new payees and any payment over a set amount.
What it means when you're the one being paid
From the other side of the invoice, the same features work in your favour. A customer who pays you by bank transfer or open banking can't reverse the payment weeks later through a chargeback, and there's no chargeback fee.
Open banking is also the safer way to ask for a transfer. Fraudsters target bank details sent by email, since a doctored copy of your invoice with one account number changed is enough to divert a payment. A pay by bank link avoids that, because your customer never types your details.
Adfin puts card, Apple Pay, Google Pay, pay by bank and bank transfer on the same payment link, so your customer can choose how they want to pay and the payment is matched back to the invoice whichever they pick. Pay by bank payments reach you the same day. If a payment doesn't arrive, Adfin's collection agents can send a reminder with the same secure link over email, SMS or WhatsApp.
Common questions
Is it safe to pay an invoice by bank transfer? The payment itself is secure, but you give up chargeback and section 75. If you pay a fraudster, the APP reimbursement rules are your only protection, and they don't cover larger businesses.
Does a bank transfer have chargeback protection? No. Chargeback is a card scheme process, so it doesn't apply to bank transfers or open banking payments.
Does APP fraud reimbursement cover my business? Only if it's a microenterprise or a charity. Individuals are covered too, but businesses larger than a microenterprise are not.
How much can I claim for APP fraud? Up to £85,000, less any excess of up to £100, and you need to claim within 13 months.
How long does an APP fraud refund take? Your bank should reimburse you within five business days, or up to 35 business days if it needs to investigate.
Is open banking safer than a manual bank transfer? The protection is the same, because both use Faster Payments. Open banking is much harder to get wrong, because the payee's details come from the business you're paying and you approve in your own banking app.
Sources
- FCA - Fraudulent payments (accurate as of October 2026) https://www.fca.org.uk/consumers/fraudulent-payments
- Payment Systems Regulator - APP scams (accurate as of October 2026) https://www.psr.org.uk/our-work/app-scams/
- UK Finance - Annual Fraud Report 2026 (accurate as of October 2026) https://www.ukfinance.org.uk/policy-and-guidance/reports/annual-fraud-report-2026
- legislation.gov.uk - Consumer Credit Act 1974, section 75 (accurate as of October 2026) https://www.legislation.gov.uk/ukpga/1974/39/section/75
- Adfin - Accept payments (accurate as of October 2026) https://www.adfin.com/accept-payments
