IDEAL
From Wikipedia, the free encyclopedia
- The correct title of this article is iDEAL. The initial letter is shown capitalized due to technical restrictions.
iDEAL is an Internet payment method in The Netherlands, based on online banking. Introduced in 2005, this payment method allows customers to buy securely on the Internet using direct online transfers from their bank account.
The participating banks in iDEAL are: Rabobank, ABN AMRO, Postbank and ING Bank, together serving the vast majority of the Dutch online banking market.
iDEAL offers merchants a low-cost, virtually risk-free and real-time payment method to accept Internet payments. For customers, iDEAL uses the same familiar environment as their banks' online banking sites. A high level of security is realized by using two-factor authentication (2FA), such as a challenge-response token based on the chip embedded in the debit card or ATM card. Furthermore, there is no need to share any sensitive information with the merchant, such as account or credit card numbers. There is no chargeback right however, which can be considered a disadvantage for the consumer using this payment method.
The concept of iDEAL is based on Rabobank Direct Betalen, an Internet payment method initially launched in 1997 by Dutch Rabobank which allowed Rabobank customers to pay directly from their bank account to Internet merchants, without using a credit card.
iDEAL works as follows:
- Merchant offers iDEAL as payment method, often in addition to the regular credit card payment options
- Consumer selects iDEAL and selects his bank
- Consumer is redirected to his bank's login page
- Participating bank displays transaction data
- Customer enters account number and signs the transaction digitally using a 2FA token
- Bank authorizes transaction in real-time, deducting the amount directly from the consumer's account (if there is not enough balance, the transaction will be refused)
- Merchant received real-time confirmation of the payment by the bank
- Consumer is redirected back to the merchant page with a confirmation that the payment has been successful
[edit] External links
- iDEAL site [1] (Dutch)
- Rabobank [2]
- ABN AMRO Bank [3]
- Postbank [4]
- ING Bank [5]
