Tink launches balance check for smoother direct debits

Europe’s leading open banking platform, Tink, has today announced the launch of Balance Check, a key feature enabling Tink customers to verify account balances. Powered by open banking, Tink’s new feature will simplify the setting up of direct debit mandates, supporting both businesses and consumers during a time of economic uncertainty.

Using real-time account data, Balance Check gives businesses the ability to verify how much a user has in their bank account in a matter of seconds, for example at pre-purchase to check whether there are sufficient funds, or post purchase to check for sufficient funds prior to a monthly direct debit collection. Balance Check can be used as a way to fight fraud, minimise failed payments, and protect customers from unnecessary penalty fees and from seeing their credit score negatively impacted.

Balance Check is a key feature of Tink’s Account Check product that allows businesses to confirm the owner of a bank account with real-time data, allowing for a smoother onboarding process.

As the cost of living continues to soar, Balance Check can help businesses protect revenue, reduce risk and increase efficiency, with Tink’s analysis showing that payment failures drive up the average cost of direct debit transactions to a UK merchant by 15-20 times. By enabling businesses to validate balance information in seconds, it becomes effortless to set up a direct debit. Businesses can also increase their collection rate with smarter billing schedules tailored to their users’ income patterns and by giving users advance notice of insufficient funds, decreasing the risk of non-payment.

Launching in the UK, Sweden, France, Germany, Netherlands and Italy, Balance Check will be rolled out more widely across Europe in 2023.

Tom Pope, Head of Payments and Platforms at Tink, commented: “Insufficient funds is the number one source of failed direct debit payments, ultimately leading to lost revenue and fees for both the business and consumer.

“By using real-time data directly from the user’s bank account, Balance Check protects businesses by reducing the risk of non-payment, while also protecting consumers from missed payments and penalty fees – which will be fundamental as the cost of living rises.”