Pull Credit Transfer
A "Pull credit Transfer" is when the authentication is done by the payer (mandatory) and the trigger is done by the payee.
The basic Credit Transfer was designed to transfer funds form account to account. When credit transfer need to be link smoothly with a purchase, it is more operationnal for the merchant to trigger the payment, even if it is a few seconds after the authentication (and acceptation) of the payer.
Thus, the merchant could access the same functions he already have with card systems:
- differ the fund transfer itself until the delivery is under process
- decrease the amount
Even if those flows bring some improvments, there are still a lot of issues:
- flows (6) and (7) should be normalised in some ways. If not, it will be impossible for any merchant to connect to any bank because they have no prior technical or contratual relationship.
- Even if the merchant could wait to trigger the fund transfer, he should not wait too much. Indeed, even if there is the consent of the payer, the funds are not reserved in an escrow system. Thus, if another operation of the payer use the balance of the account, the credit transfer will not be submitted.
- It is quite impossible for the bank of the payer to be sure that the merchant is a registered one and not a fake.