Visa unveils initiative to boost consumer protection for bank transfers

An initiative to help boost consumer protection when people pay bills by bank transfer is being planned by Visa.

It said the move will support people to pay recurring bills with bank transfers and make it easier for them to get their money back if something goes wrong.

Visa A2A (account-to-account) will launch in the UK in early 2025 and will give consumers an “easy-to-use” dispute resolution service.

This will work alongside innovations such as biometrics to add a new level of security, resulting in fewer unauthorised transactions, according to Visa.

Visa A2A will ensure consumer-to-business bank transfer payments have similar levels of protection that consumers are used to when they use their cards

It added that people will also be able to set limit amounts, so higher bills will not put them unexpectedly under financial stress.

Mandy Lamb, managing director, Visa UK and Ireland , said: “Visa A2A will ensure consumer-to-business bank transfer payments have similar levels of protection that consumers are used to when they use their cards.”

From early next year, banks and businesses in the UK will be able to offer Visa A2A to consumers making bill payments such as utilities, rent and childcare fees, Visa said

In the future, it also plans to support people in managing subscriptions to products and services including digital streaming, gym memberships and food boxes.

Visa A2A will be available for eligible banks and other industry partners to join and is being designed in partnership with financial technology firms in the UK, Visa said.

Otto Benz, director of payments, Nationwide Building Society , said: “We know that businesses and consumers alike are keen to explore the benefits of A2A transactions, and we expect demand to increase in the coming years.”

Pella Frost, head of everyday banking, HSBC UK, said: “We welcome an initiative that seeks to standardise the rules, capabilities and protections for customers using account-to-account payments.”

A spokesperson for Lloyds Banking Group said: “We welcome innovation in the market to improve the overall experience for people making payments.”

Several initiatives already exist to help prevent people from making transfers of money that they may later regret.

They include “confirmation of payee”, which checks that the name and the bank account details match – helping to prevent payments accidentally going to the wrong bank account or being made to a fraudster.

A voluntary code is also in place to reimburse people who are tricked into paying a fraudster.

From October 7 this year, mandatory reimbursement measures will come into force for people tricked into transferring money to fraudsters, overseen by the Payment Systems Regulator.

Under the PSR’s new rules, customers are expected to be protected under more consistent minimum standards.

The general protections in place to help people paying by card to get a refund include the chargeback scheme, which lets people ask their card provider to reverse a transaction.

People paying by credit card may also have protections under Section 75 of the Consumer Credit Act, which holds the credit card company jointly liable with the retailer or trader.