BANKS/COLLECTING PSPs
What is iDEAL?
iDEAL is a standardised payment method for making secure online payments directly between bank accounts. To offer iDEAL as a payment method in an online store, a direct link is established with the systems of participating banks. In other words, this one connection to iDEAL enables each webshop’s visitor with access to online banking of ABN AMRO, ASN Bank, Friesland Bank, ING, Knab, Rabobank, RegioBank, SNS Bank, Triodos Bank or Van Lanschot Bankiers to make payments in this way. No other payment product offers this facility.
iDEAL is steadily gaining a reputation as a trusted online payment method. Already more than half of all Dutch online shoppers use iDEAL.
The English animation below shows how an iDEAL payment is established behind the scenes.
New iDEAL version suitable for cross-border euro payments
Europe is moving towards a Single Euro Payments Area (SEPA), which will soon allow us to pay anywhere in this area with the same set of payment instruments. SEPA comprises all EU countries, including Norway, Iceland and Liechtenstein (which are members of the European Economic Area), Switzerland and Monaco. New standards will be introduced in the payment system for account numbers and payment instruments to ensure that euro payments in this area are executed in the same manner everywhere. The SEPA Credit Transfer and the SEPA Direct Debit will soon be used for domestic as well as cross-border euro payments.iDEAL is a payment standard that is currently based on the Dutch domestic transfer. The iDEAL payment standard has been adapted so that it can also be used shortly for both domestic and cross-border euro payments.We have listed the changes to ensure that you experience a smooth transition to a new version of iDEAL. Read more about the changes to the iDEAL payment standard and find out what you need to do to have iDEAL ready on time.
Benefits for banks (Licensee iDEAL)
- Revenue from merchant and/or consumer fees, where the pricing is set by the individual bank;
- Interchange fees can be agreed between the issuing and acquiring banks;
- Offering the most attractive online payment product will improve client relationships and strengthen the bank’s competitiveness;
- Intensified use - and improved leverage - of account relationships through a trusted and popular consumer online banking application;
- High level of online security minimises risk of fraud;
- Fully automated, straight-through processing, thus no reversals or charge-backs;
- Replacement of costly paper-based payments;
- Easy integration with online banking application and back office.
Benefits for Collecting PSPs (Certificate holder iDEAL)
- Revenue from merchant and/or consumer fees, where the pricing is set by the individual bank;
- Offering the most attractive online payment product will improve client relationships and strengthen the bank’s competitiveness;
- Intensified use - and improved leverage - of account relationships through a trusted and popular consumer online banking application;
- High level of online security minimises risk of fraud;
- Fully automated, straight-through processing, thus no reversals or charge-backs;
- Easy integration with the checkout system for the online store of the merchant.
How does iDEAL work?
iDEAL is easy to use and requires just a few simple steps on the part of consumers:
- In order to checkout the customer clicks on the iDEAL payment icon;
- From a drop-down list, the customer selects his own bank, which opens the online banking environment he is familiar with. The customer simply authorises the prefilled payment instruction;
- As soon as payment has been authorised, the amount due is debited from the customer’s account and transferred to the merchant’s bank account - there is no credit risk;
- Just seconds after the customer has authorised the payment, the successful payment status is confirmed to the merchant. As merchants know that the funds are on their way, they can proceed with shipping or rendering the service immediately. There is no risk for the merchant because the customer cannot reverse the payment. Merchants will have payments credited to their account at the same speed as a normal credit transfer.
The following fees charged by Currence are in effect.
For more information about iDEAL a presentation for banks is available. If you are interested in receiving this presentation, please click here.
Information for online merchants can be found on this website via the menu ‘Merchants’.
Mobile payments with iDEAL
Some banks have developed special versions of iDEAL to enable payments from a mobile device. Merchants don’t have to change their implementation to accept iDEAL payments initiated on a mobile device, the consumer’s bank recognizes if the consumer operates a mobile device. Please read our explanation on mobile payments via iDEAL for consumers.