Giropay offers merchants a real-time payment method (publicized as virtually risk-free) to accept internet payments. For customers, Giropay uses the same environment as their banks' online banking sites. The level of security depends on the participating bank. Some German Banks offer
two-factor authentication (2FA), such as a
challenge–response access token based on the chip embedded in the
debit card or
ATM card. Others, however, offer simpler
PIN and
TAN based online banking services. No sensitive information is being shared with the merchant, such as
credit card or
Giro account numbers. There is no
chargeback right however, which can be considered a disadvantage for the consumer using this payment method. This is considered an advantage to the merchants. Giropay works as follows: • Merchant offers Giropay as payment method, often in addition to the regular credit card payment options • Consumer selects Giropay and selects their bank • Consumer is redirected to their bank's login page • Participating bank displays transaction data • Customer enters account number, PIN, and either: • A remittance slip is sent to the customer for confirming the transaction, containing a TAN (transaction number). The customer enters this number to confirm the transaction. • The customer signs the transaction digitally using a
2FA token (if their bank offers that service) • 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 Payments are guaranteed for amounts up to 5000 euros. == Costs ==