Payment errors hit UK SMEs as manual transfers drive checkout anxiety

By Puja Sharma

New research from Tink, A Visa Solution, reveals widespread payment anxiety around manual bank transfers, with six in 10 (59%) Brits worrying about entering the wrong details when paying this way.

• Around 43% of UK SMEs that accept manual transfers have faced payment issues caused by customer error in the past year, adding extra costs and admin burden to their business. 
• SMEs are waking up to the problem, with 27% now prioritising ‘low-risk’ payment methods. 

A new study from Tink, a market-leading open banking and payments platform, reveals that many UK consumers feel anxious about making mistakes when paying by manual bank transfer. This lack of confidence is driving abandoned transactions and undermining trust in the small businesses they buy from – while simple human errors continue to cause failed payments.  

Tink refers to this consumer anxiety about some payment methods as the ‘Fear of Messing Up’ (FOMU). Meanwhile the ‘Cost of Messing Up’ (COMU) refers to the business impact of payment errors on sales, staff time and customer relationships.  

Confidence issues stalling payments   

Just 11% of UK consumers surveyed feel totally confident when making payments in general, while six in 10 (59%) worry about entering the wrong details when paying by manual bank transfer. Their fears about manual bank transfers are justified: 43% of UK SMEs surveyed that accept manual transfers say they’ve faced payment issues caused by customer error in the past year.  

FOMU impacts how people pay. More than a third (37%) of consumers surveyed say they would abandon a payment altogether rather than risk entering the wrong details – and 7% of consumers admit they’ve mistyped payment details, with funds failing to reach the right account.  

For customers who have messed up a payment, the fallout can be both frustrating and time-consuming. Almost three in 10 (29%) had to contact their bank to trace missing funds, while 23% said the experience left them less confident about making future payments.  

The COMU effect: payment errors cost SMEs time, money and trust  

For SMEs, these customer errors create the Cost of Messing Up. Among those SMEs surveyed that have experienced payment issues, 38% lost valuable time tracking down missing funds, while over a quarter (28%) had to dedicate staff solely to resolving the problem.  

Secure payments are key to restoring trust at checkout  

Tink’s research also highlights opportunity. More than three-quarters (78%) of consumers say they’re more likely to complete a payment if they can verify details before confirming. SMEs surveyed are taking note: 27% now prioritise a ‘low risk of human error’ when selecting payment methods.  

Ian Morrin, Head of Payments at Tink, said: “During one of the busiest shopping periods of the year, relying on manual bank transfers means all the pressure is on customers to get every detail right. When they don’t, it’s the UK’s small businesses that pay the price in lost sales, wasted time and eroded trust. The Cost of Messing Up (COMU) is something SMEs can no longer afford to ignore. Secure, recognised payment methods, including Pay by Bank, significantly reduce that risk, giving consumers confidence and merchants certainty at checkout.”  

Tink is part of Visa A2A which is bringing greater protections to Pay by Bank payments. This will effectively provide a similar level of protection typically associated with cards, giving consumers yet another safe and secure payment option.