Tink launches Balance Check for smoother direct debits

By Gloria Methri

Europe’s open banking platform Tink has launched Balance Check, a key feature enabling its customers to verify account balances. The feature aims to simplify the setting up of direct debit mandates, supporting both consumers and businesses.

Using real-time account data, Balance Check enables businesses to verify how much a user has in their bank account in a matter of seconds. It also lets businesses confirm the owner of a bank account, allowing for a smoother onboarding process.

The feature can also be used to fight fraud, minimise failed payments, and protect customers from unnecessary penalty fees and from seeing their credit score negatively impacted.

Tink cited an analysis showing that payment failures drive up the average cost of direct debit transactions to a UK merchant by 15-20 times. As the cost of living continues to soar, Balance Check seeks to help businesses protect revenue, reduce risk, and increase efficiency.

Tom Pope, Head of Payments, and Platforms at Tink said, “Insufficient funds are 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.”

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.