The popular payment method “instant bank transfer”, or DIRECTebanking, was classified as inacceptable by the district court of Frankfurt, because it poses considerable risks for data security and supposedly opens doors to fraud and misuse. Online-Bezahlverfahren Sofortüberweisung (Link to the german newsticker of www.heise.de).
Instant bank transfer accesses customer online banking login details – a procedure banks have often criticised and compared to a man-in-the-middle attack.
But, thanks to its simplicity, instant bank transfer is among the most popular online payment methods. The question arises: why do banks and Sofortüberweisung not choose to cooperate? Banks and Sofortüberweisung would both benefit from working together. Sofortüberweisung could effectively counter any criticisms it faces, and banks would find a very popular payment method inside their portfolio.
Banks who wish to offer this payment method would have to make money transfers equally as simple as Sofortüberweisung has done previously, and transfers would have to be processed by banks themselves.
A Swiss bank has already implemented such a method. Here, customers choose their favourite direct payment method, without having to bypass their banks’ security mechanisms. Users are involved in payment transactions and can authorise payments, without having to worry about a man-in-the-middle attack.
This makes for a typical win-win situation. For customers, this path is highly desirable.
Dr. Salim Güler
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