The Illusion of Convenience

Credit cards have become the default for online payments, propped up by decades of brand recognition and consumer habit. For most merchants, accepting card payments is non-negotiable. But behind the scenes of each swipe or click lies a pricing model that chips away at margins, imposes operational complexity, and introduces unnecessary risk. While cards promise convenience, the true cost often goes unseen and unpaid by the consumer, it’s the merchant who picks up the tab.

The Margins Game: How Card Fees Erode Profit

Card networks charge merchants between 2 to 4 percent per transaction. For high-volume or low-margin businesses, that toll can be brutal. On top of that are assessment fees, gateway fees, chargebacks, and monthly service charges that quickly snowball. In a world where businesses fight for every percentage point, card processing fees can quietly determine who thrives and who struggles.

Chargebacks, Fraud, and the Compliance Burden

Beyond fees, merchants must navigate the labyrinth of fraud risk, chargebacks, and PCI compliance. A single fraudulent transaction can not only cost money but also time, reputational damage, and operational drag. Card payments are inherently pull-based and vulnerable to bad actors. Each layer added to reduce this risk often adds more cost and friction.

The Power Shift: Why Pay by Bank is Gaining Ground

Over the past few years, a quiet revolution has been brewing. Open banking and real-time payments infrastructure have enabled a new breed of direct-to-bank payment methods. These methods bypass card networks entirely, allowing merchants to accept funds directly from a customer’s bank account. Known as Pay by Bank, these solutions eliminate interchange and minimize fraud by authenticating through the bank itself.

Enter Pay by Passkey: A Safer, Smarter Way to Get Paid

Pay by Passkey takes Pay by Bank one step further. Instead of relying on passwords or complex redirects, it uses passkeys, a modern, device-native form of biometric authentication, to initiate secure, authenticated payments directly from a user’s bank. The result is a seamless experience that feels as fast and simple as Apple Pay, but with none of the card tax.

Real Savings, Real Control

With Pay by Passkey, merchants no longer surrender 3 percent of their revenue to payment middlemen. There are no hidden fees or chargeback risks, and funds arrive instantly or near-instantly. This level of transparency and control is a welcome change for businesses that have had to build pricing models around the card system’s limitations.

Consumer Experience Without the Card Tax

Perhaps most importantly, Pay by Passkey is not just a cost-saving tool. It delivers the kind of smooth, one-click checkout experience that customers expect. With built-in biometric authentication and no need to enter card details, the payment feels fast, secure, and familiar. Unlike older Pay by Bank options that required multiple redirects and logins, this is Pay by Bank modernized for the mobile-first era.

The Competitive Edge for Modern Merchants

As more merchants seek to protect their margins and provide a better checkout experience, Pay by Passkey offers a compelling path forward. Early adopters will not only benefit from cost savings but also gain brand trust by showing they prioritize both efficiency and security. In competitive verticals like retail, travel, and marketplaces, every advantage counts.

Merchants are Breaking Up With the Status Quo

The card system may still dominate, but it is no longer the only option, or the best one. Merchants now have access to infrastructure that gives them back control. By adopting Pay by Passkey, they can escape the hidden tax of cards and build a payments stack that works in their favor. In a market where cost control, fraud prevention, and user experience are make-or-break, the case for Pay by Bank is stronger than ever.