In this article, we’ll explain exactly how push payments work, how they compare to pull payments, and why they make sense for trade credit and one-off invoices. We'll also cover the benefits for your business, how to reduce fraud risks, and how Open Banking can improve the experience.
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Push payments are straightforward. Your customer initiates the transaction and sends funds directly to your account. That simplicity is what makes push payments effective in B2B settings. They offer speed, control, and predictability.
Whether you're managing trade credit, collecting one-off invoices, or processing ecommerce transactions, knowing how push payments work helps you choose smarter, lower-risk payment methods.
In this article, we’ll explain exactly how push payments work, how they compare to pull payments, and why they make sense for trade credit and one-off invoices. We'll also cover the benefits for your business, how to reduce fraud risks, and how Open Banking can improve the experience.
The payer initiates a push payment. The buyer logs into their bank, enters your details, and sends the money. You don’t request the funds or pull them from the account. You simply receive the payment.
This differs from pull payments, such as Direct Debits, where the seller initiates the transfer after obtaining permission from the buyer.
The payer authorises push payments in real-time; they control when and how much to pay, which works well for invoices, trade credit, or supplier payments, usually situations where timing and accuracy are essential.
Here’s a simple push payments example: Your business sends a customer a digital invoice for £3000. The customer logs into their online banking, enters their account number and invoice reference, and then sends the payment. The funds arrive in your account immediately, with no need for a scheduled collection or card processing day.
For the buyer, it’s a deliberate action. For the seller, it means faster access to funds and fewer failed transactions.
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The main difference between push and pull payments is control.
With a push payment, the buyer initiates the transaction. They log in, authorise the amount, and send it. With a pull payment, the seller initiates it. After getting permission, they take funds from the buyer's account automatically and on a set schedule.
Think of push payments as manual and flexible and pull payments as automatic and recurring. You can use push payments when payment amounts or schedules vary. They suit one-off invoices, project-based work, or B2B trade credit.
Use pull payments when collecting regular amounts, like subscriptions or utilities.
Choosing between push and pull payments depends on your business model. The more variable your payment terms, the more useful push payments become. Here’s a quick comparison of push payments vs pull payments:
B2B trade credit often involves flexible payment schedules. Buyers receive goods upfront and pay later, often in 30 or 90 days or spread over 12 months with regular monthly instalments.
Push payments fit this structure well. The buyer controls when they pay, and the seller receives funds immediately after authorisation; this cuts delays. You send an invoice. The customer approves and sends payment instantly, without needing a Direct Debit or a paper cheque.
In sectors like wholesale, construction, or manufacturing, where payment terms can vary, push payments offer clarity and control on both sides. You get faster payment confirmation. Your buyer avoids rigid schedules. You both avoid failed collections.
And when paired with clear invoices and an embedded invoice payment link, push payments make the process even smoother.
Push payments bring several practical benefits:
Customers benefit too. They know exactly when the payment leaves their account, helping them manage cash flow.
All of this supports smoother operations, fewer disputes, and better relationships between buyers and sellers.
Push payments are often a target of fraud. The biggest risk is authorised push payments (APP) fraud. Fraudsters trick the payer into sending money, often by using a fake invoice or impersonating a supplier. Because the payer authorises the transaction, it can be hard to recover funds.
But what are authorised push payments? They’re legitimate payments made by an account holder but sent to the wrong person due to deception. Since the bank didn’t make the mistake, the responsibility often falls on the sender.
To reduce this risk:
Educate your customers. Clear guidance on spotting scams goes a long way.
And consider using Open Banking. It reduces the risk of mistyped account details and adds an extra layer of security to each payment.
Every push payment is deliberate. That makes account reconciliation simpler. You receive payments with invoice references or payment IDs, which makes it easier to match them in your accounting system. Your finance team spends less time correcting errors and more time on strategic planning.
Cash flow visibility also improves. You see exactly when the customer makes a payment. There are no uncertain collection windows or pending mandates. That means you can plan supplier payments, payroll, and investments with more confidence.
With push payments, you reduce friction across your finance operations. You free up time. And you avoid the hidden costs of delays and failed collections.
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Yes. Open Banking enhances both the safety and ease of push payments.
When a customer pays using an Open Banking link, they don’t enter your bank details manually.
They select their bank, log in, and approve the payment, which reduces errors and the risk of fraud. It also makes the experience faster and more consistent.
For businesses, this means fewer failed transactions and better cash flow. For customers, it means a familiar, secure process that works across all major UK banks. And because Open Banking payments use strong customer authentication, they’re more resistant to fraud than traditional bank transfers.
If you're issuing invoices or managing large payments, adding Open Banking push payment options can improve trust and speed up settlement.
Push-to-card payments are a special type of push payment. Instead of sending money to a bank account, funds go directly to a debit or credit card. Businesses primarily use these for outbound payments, such as refunds, gig worker wages, or instant rebates.
If you need to pay individuals quickly, push-to-card is useful. Funds arrive in minutes, and you don’t need to collect full bank details. But if your main objective is getting paid, not paying others, push-to-card payments are less relevant.
For B2B payments, trade credit, or invoice settlements, standard bank-based push payments remain the better fit.
Push payments are transforming the way that businesses in the UK are paid. They are quick, clear, and adaptable. They help sellers receive money more quickly and give buyers control. For businesses offering trade credit, this is a big advantage. You keep operations moving while giving customers a frictionless way to pay. With the added protection and ease of Open Banking, push payments are becoming even more helpful. They also help with reconciliation, cash flow planning, and fraud reduction.
If you're looking to streamline payments, reduce errors, and get paid faster, push payments are a smart step forward.
