GLOBAL PAYMENTS KNOWLEDGEISO 20022 / SWIFT / SEPA / MT / MX
PAYMENTSSIGNAL

The interactive academy for the standards, messages, and rails that move money.

PROGRESS
DRILL · OPEN BANKING, PSD2, AND PAYMENT APIS

Put Open-banking payment initiation back in order

These steps are shuffled. Put them back into the order the payment actually takes.

In Open-banking payment initiation, what happens first, and what follows?

Step 1 of 1

THE DRILL AS TEXT

  1. In Open-banking payment initiation, what happens first, and what follows?
    • Maya consents at the merchant checkout — Instead of typing card details, Maya chooses to pay by bank. She gives Larkpay consent to start a single payment of EUR 42.50 from her account — consent is for this one payment, not open-ended access.
    • Larkpay initiates the payment via Bank Alfa's API — As a payment initiation service provider, Larkpay does not hold Maya's money. It calls Bank Alfa's open-banking API — the account servicer, or ASPSP — to set up the credit transfer Maya consented to.
    • Bank Alfa applies strong customer authentication — Bank Alfa, not Larkpay, authenticates Maya. It applies strong customer authentication (SCA) — typically a redirect or app check with two independent factors — because only the account-holding bank may authorise moving her money.
    • Maya authenticates with her bank — Maya approves the payment directly with Bank Alfa — in its app or via a redirect — proving it is really her. Larkpay never sees her banking credentials; it only learns whether authentication succeeded.
    • Bank Alfa validates and debits Maya — With SCA passed, Bank Alfa checks funds and books the EUR 42.50 debit against Maya's account. Her money has left her account, but nothing has yet moved between the banks.
    • Bank Alfa sends a SEPA credit transfer — The initiated payment becomes an ordinary interbank SEPA Instant credit transfer. Bank Alfa submits a pacs.008 to the clearing and settlement mechanism, addressed to Northstar Bank. Open banking started the payment; the SEPA rails carry it.

This drill is built from Open banking, PSD2, and payment APIs — it rearranges material written and sourced on that page rather than asserting anything new, so every claim in it is checkable there.