Pay by Bank, such as through an open banking platform like Yapily, can help reduce certain fraud risks in online gambling when compared with some traditional payment methods
Payments are authenticated directly through the player’s bank with Strong Customer Authentication. Account ownership is verified in real-time, and once authorised, the transaction can’t be reversed through the traditional chargeback process. This means operators avoid card-scheme chargebacks altogether, reducing fraud exposure while gaining certainty that cleared funds are final.
Here are some common payment methods in online gambling, the fraud risks they carry, and how they compare to Pay by Bank.
E-wallets
E-wallets reduce fraud by adding KYC checks and protecting card details. However, they can still face chargebacks and are restricted in some markets.
Why choose Pay by Bank: It delivers bank-level authentication, removes exposure to card-scheme chargebacks, and confirms account ownership in real time.
Bank transfers
Direct bank transfers are generally secure but often slow, creating friction for players.
Why choose Pay by Bank: It combines the same bank-grade security with instant settlement on rails like Faster Payments or SEPA Instant. With Yapily, PSPs can offer both speed and security through one API.
Prepaid vouchers
Prepaid vouchers are fraud-resistant since deposits are irreversible, but they are capped at smaller amounts and only work one way.
Why choose Pay by Bank: It provides irreversible transactions for both deposits and withdrawals, offering a more complete solution without the limitations of vouchers.
Cryptocurrency
Crypto is fast and irreversible, but it carries high regulatory and AML risks in regulated iGaming markets.
Why choose Pay by Bank: It offers the same irreversibility within a PSD2-compliant framework, with built-in support for KYC and AML checks via bank data.
Credit and debit cards with 3D Secure
Cards are familiar, and 3D Secure helps reduce fraud, but operators still face chargebacks and liability for disputes.
Why choose Pay by Bank: Transactions are authorised directly by the bank and cannot be reversed.
Fraud reduction payment method snapshot
Method | Fraud reduction strengths | Limitations for iGaming Operators |
Pay by Bank (Open Banking) | Bank-level authentication, verified account ownership, no chargebacks, instant settlement | Not offered in all markets (but widely available in most of Europe) |
E-wallets | KYC checks, card details hidden, fraud monitoring | Restricted in some markets, still exposed to chargebacks |
Bank transfers | Low chargeback risk, strong authentication | Slower settlement, less convenient for small deposits |
Prepaid vouchers | Irreversible deposits, no card data risk | Deposit-only, capped amounts, no withdrawals |
Crypto | Irreversible, fast, cross-border | High AML/KYC risk, volatility, regulatory restrictions |
Cards with 3DS2 | Familiar, reduced card-not-present fraud | Chargebacks still possible, operator liability remains |
FAQs: Best payment method to reduce fraud in online gambling, 2025
Which payment method reduces fraud most effectively?
Pay by Bank via open banking, because it uses bank-level authentication, verifies account ownership, and removes chargeback risk.
How does Pay by Bank compare to e-wallets for fraud prevention?
E-wallets add KYC checks but can still be charged back. Pay by Bank removes that risk and authenticates directly with the bank.
Is crypto reliable for fraud reduction in iGaming?
Crypto prevents chargebacks but carries high regulatory and AML risks. Pay by Bank provides the same irreversibility with stronger compliance.
Can Pay by Bank support compliance as well as fraud reduction?
Yes. Bank data supports KYC, AML, and affordability checks, helping operators stay compliant. Yapily’s API lets PSPs embed these tools directly.
What approach should PSPs take to reduce fraud for operators?
A mix of methods may be used, but Pay by Bank offers the most balanced option. With Yapily, PSPs can deliver secure, instant, and compliant transactions across European markets.
While wallets, vouchers, and cards all play a role, Pay by Bank via Yapily provides PSPs and iGaming operators with the most effective mix of fraud reduction, compliance, and speed in a single integration.
Yapily Ltd is authorised and regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of Account Information Services and Payment Initiation Services (FRN 827001).
Yapily provides open-banking connectivity and API infrastructure services. Yapily does not provide gambling services, fraud prevention, AML/KYC checks, affordability assessments, or compliance services, and does not assume PSPs’ or operators’ regulatory obligations under FCA or UK Gambling Commission requirements.
Any benefits described — including faster settlement, reduced costs, improved conversion, or reduced chargeback exposure — depend on each PSP’s and operator’s implementation, bank availability, and customer behaviour and are not guaranteed.
Coverage information is based on internal data as of January 2026 and may change.