A £2,000 kitchen deposit can look very different on your bank statement depending on how the customer pays. A card payment may be quick, but a percentage fee takes more from a larger job. A manual bank transfer avoids that fee, but can leave your team chasing references, checking accounts and waiting for confirmation. So, do bank payments cost less? Often, yes - but the real answer depends on the payment method, the job value and the time it takes to get paid.
For businesses collecting deposits, stage payments or invoices of £250 and above, the best comparison is not simply card versus bank transfer. It is the total cost of collecting the money reliably.
Do bank payments cost less than card payments?
Traditional bank transfers are usually cheaper to receive than card payments because the customer sends money directly from their bank account to yours. There is generally no card-acquiring percentage deducted from the amount you receive.
That distinction matters as payment values rise. A percentage-based card charge increases with every pound collected. On a small purchase, that may be a manageable cost of convenience. On a sizeable boiler installation deposit, bodywork repair bill or invoice for professional work, it can become a noticeable hit to margin.
Pay by Bank uses open banking to bring the direct-account-to-account model into a more controlled payment journey. Rather than asking a customer to type in account details and a reference manually, you send a request for the exact amount. They choose their bank, approve the payment in their own banking app or online banking, and receive confirmation.
The payment still moves between bank accounts, but the collection process is designed around a business need: getting a specific amount paid, by a specific customer, with a clear reference and a record you can follow.
The cost is more than the transaction fee
A free manual bank transfer is not always the lowest-cost option in practice. It can create work that never appears as a line item on a statement.
Picture a customer who says they will pay the deposit later that evening. Your office sends bank details by WhatsApp. The customer enters the wrong reference, pays a slightly different amount, or simply forgets. The next morning, someone must check the account, match an incoming payment and send a reminder if it has not arrived. Meanwhile, the installation date may be held without certainty that the deposit is secure.
That process can work for occasional payments from familiar customers. It becomes expensive in staff time and cash-flow uncertainty when it happens repeatedly. It also lacks the professional structure many customers expect when they are paying a substantial amount.
A payment request has a cost, but it can reduce those hidden collection costs. The amount and reference are set before the request is sent. The customer has a clear route to pay. Status updates and confirmations give the business a better view of what has happened, rather than relying on a customer saying, “I’ve sent it”.
When Pay by Bank can be the lower-cost choice
Pay by Bank tends to make the strongest financial case for higher-value, one-off or milestone payments. These are the payments where card fees can rise quickly and where a missed or delayed transfer has a meaningful effect on the job schedule or cash flow.
A fixed-fee model makes the maths easier to understand. With Kube Pay, businesses pay a fixed £1 per payment rather than a card-style percentage fee. That means the collection cost does not rise simply because the invoice is larger. For a £300 payment, you may value the predictable workflow as much as the fee difference. For a £3,000 or £10,000 payment, the fixed charge can be particularly relevant to protecting margin.
The value is not only the fee. A properly presented request can be sent by SMS, email, WhatsApp or QR code, so it fits the way many customers already communicate with trades and service businesses. They do not need to locate account details, copy a reference or take a photo of a bank card. They approve payment through their own bank.
For the business, that can mean fewer payment-chasing calls, fewer avoidable reconciliation errors and more confidence before materials are ordered or a slot is reserved.
When cards may still be the right option
Lower cost does not mean Pay by Bank should replace every payment method. Cards remain familiar and useful, particularly for lower-value transactions, walk-in sales and situations where a customer strongly prefers to pay by card.
Some customers may not be comfortable using open banking yet, or their bank may not support the exact journey required. A business that gives customers a choice is often better placed than one that forces a single method in every situation.
There is also a commercial consideration. If taking a card payment immediately secures a job that might otherwise be lost, the card fee may be worthwhile. The aim is not to avoid card payments at all costs. It is to avoid paying a rising percentage fee by default when a secure bank-payment request is better suited to the transaction.
For many businesses, the practical approach is straightforward: keep cards available where convenience is the priority, and use Pay by Bank for deposits, invoices and larger payments where fee control and payment certainty matter most.
A payment request is not the same as sharing bank details
Customers are used to being cautious about unexpected payment messages. That is sensible. The way a request is presented and authorised matters.
With a Pay by Bank request, the customer reviews the payment and authorises it within their own banking app or online banking environment. They do not give Kube Pay their bank login details. Regulated payment initiation is provided through Yapily Connect Ltd, which supplies the open-banking infrastructure behind the process.
This is different from asking a customer to manually key in sort code and account-number details from a message. It also reduces the chance of a typo in the payment reference or amount. The customer can see what they are approving, while the business has a clearer audit trail for the request.
That reassurance can be especially useful for larger payments. A homeowner paying a deposit for windows or solar work wants confidence that the request is genuine. A clinic patient or garage customer wants to know what they are paying for. Configurable branding, a defined payment amount and a receipt after payment all help make the process feel considered rather than improvised.
How to compare your real payment costs
Start with your typical payment size, not your smallest one. Look at the deposits and invoices you collect most often, then compare the card-processing cost on those transactions with a fixed per-payment charge.
Next, consider the operational cost. How much time does your team spend sending account details, checking for funds, matching vague references and reminding customers to pay? If payment delays hold up ordering, booking or job completion, include that impact too. A lower fee is helpful, but a lower-effort collection process can be just as valuable.
Finally, look at the customer journey. Can the customer pay from the message thread you are already using? Is the amount clear? Do you know quickly whether they have paid? A payment method that works well for your office but confuses customers will not deliver the result you want.
Make the method fit the job
Bank payments can cost less, particularly when you are collecting larger sums and want to avoid percentage-based card charges. But the strongest case is not simply “bank transfer is free”. It is a structured request that makes direct bank payment easier for the customer and easier to manage for your business.
For a substantial deposit, the right payment method should protect the value of the job, give the customer a secure route to approve the payment and let your team move on without wondering whether the money has actually arrived.