Sweeping
Sweeping refers to the automated transfer of funds between accounts based on predefined rules, typically on Open Banking APIs. This is commonly used to consolidate funds, manage liquidity, or optimise interest earnings, or adjust an account once a balance reaches a certain threshold.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
