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February 2 2023

Frequently Asked Questions: Open Banking

Blog Details

What is open banking?

Open banking is your wholesaler's preferred payment method and allows users to make immediate payments quickly and easily. It’s just like making a bank transfer online or with a banking app, but with the wholesaler’s payment information already inputted – B2B Open Banking just makes the process much slicker.

Will I have used anything similar to open banking in the past?

Almost certainly. Open banking is similar to sending a bank transfer from an online banking app or website, but instead of having to input payee payment details, the information is already pre-populated with the wholesaler’s payment information.

Why am I paying this way?

Open banking is one of the most cost-effective methods to send payments as it reduces card and processing charges for the wholesaler. By cutting down on these additional costs, your wholesaler can run a more efficient operation, meaning they can maintain the best possible prices for you.

Is open banking secure?

Yes. Each transaction is completed via bank transfer, so goes through the same stringent security checks by both banks before releasing the funds.

Is open banking recognised by the Financial Conduct Authority (FCA)?

Yes. The emergence and growing popularity of open banking methods in the UK encouraged the creation of a joint regulatory oversight committee in March 2022 that included the FCA, Payment Systems Regulator (PSR), Competition and Markets Authority (CMA) and HM Treasury.

Are there different ways to use B2B Open Banking?

Yes. Each user of B2B Open Banking uses the technology differently depending on their needs, but there are options for this to be used in a variety of ways – in-depot, on delivery, on email/invoice templates, or by telesales – using a combination of QR codes, links and SMS messages.

Do I need to select the bank I want to pay from?

Yes, when using the open banking link for the first time. After the initial selection has been made, your bank will be automatically remembered, so when you press the ‘start’ button, you will be taken directly to your online banking app or website. You can select your bank from the dropdown menu within the link.

Does my bank support open banking?

The majority of major UK banks have signed up to use open banking, with more banks adding capability all the time. When selecting the dropdown menu within the open banking link, all available banks will be shown.

What do I do if I’m getting an error message?

Interruptions to the open banking service are possible, so try again in five minutes if an error message appears. If the same thing happens again, please check with your bank to ensure your account is set up to allow open banking and email your wholesaler if the issue continues.

Who is Fena Labs Ltd?

Fena is a third party open banking provider that provides the functional payment service for B2B Open Banking. Depending on your bank, the name may appear on your screen during the payment process, but this is nothing to be concerned about. Fena Labs Ltd is authorised and regulated by the Financial Conduct Authority.

Can I settle more than one invoice at a time?

Yes, bulk payments of multiple invoices are accepted as a one-off transaction, making it quick and easy to settle bills in one go.

Is there a limit to how much I can pay with open banking?

Yes, some banks do have daily transaction limits that range from £10,000 upwards. To see a full list of banks with daily transaction limits for open banking and what they are, visit https://help.fena.co/support/solutions/articles/101000403605-a-list-of-banks-with-a-daily-transaction-limits 

Can I set up regular payments using open banking?

Not at the moment. Open banking allows for immediate, efficient and secure bank payments directly from one bank account to another, making it easier to manage your money. As such, the technology is currently used for scheduled transactions.

When will my account be updated after making a payment?

Immediately. Just as with a bank transfer to another account from your online banking app or website, successful payments will go through straight away, meaning that your account balance with your wholesaler will also represent that payment in real time.

Can I still pay using other payment methods?

Yes, of course – although the benefits of using open banking are that it’s easier to manage your money and it reduces transaction charges for the wholesaler. So by using open banking, you’re helping them to reduce operational costs and allowing them to provide the best possible prices. It’s a win win!