Comparison
PayTo vs Credit Cards: Evaluating Cost, Churn, and Fraud
A side-by-side comparative analysis of PayTo account-to-account mandates versus traditional Visa/Mastercard processing for Australian merchants, subscription platforms, and service providers.
Executive summary: Comparing account-to-account and card payments
Credit cards offer broad familiarity, but card billing can involve percentage-based fees, expiry-related updates and dispute processes. PayTo uses a customer-authorised bank-account agreement instead of a card credential, which may suit eligible recurring collections. Payment timing, agreement lifecycle, coverage and payment outcomes still depend on the customer, bank and configured provider flow.
From 1 October 2026, Australian card surcharging is changing. Businesses comparing cards with account-to-account payments should factor the new rules into their cost model. Read the RBA card surcharge changes guide for Australian small businesses.
Side-by-side feature comparison
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| Feature / Dimension | PayTo (Account-to-Account Mandate) | Credit & Debit Cards |
|---|---|---|
| Fee Structure | Flat $0.29 / $0.99 (incl. GST) | 1.5% – 2.9% + per-transaction fixed fee |
| Card Expiry / DOU Churn | No card-expiry dependency; agreement lifecycle still applies | 15% – 20% annual card expiration churn |
| Settlement Availability | Near real-time where supported; fund availability can vary | 1 to 3 business days (Subject to payout holds) |
| Chargeback & Dispute Risk | Different dispute and return model; verify applicable protections | High (Friendly fraud, stolen card claims, dispute fees) |
| Customer Security | Authorized inside 2FA bank app | Uses card credentials and applicable card-network authentication controls |
| Surcharging | Non-card payment method; check provider terms and applicable pricing guidance | Card surcharging changes from 1 October 2026; see the linked RBA guide |
Cost analysis: $1,000 monthly subscription billing example
Credit Card Processing
At an illustrative 1.75% + 30c card processing rate, a $1,000 recurring payment costs $17.80 per transaction. Across 100 subscribers, card processing costs $1,780/month ($21,360/year). Actual provider pricing and card mix vary.
ShaBaas Pay (PayTo)
At a $0.99 incl. GST PayTo transaction rate, a $1,000 payment costs $0.99 per transaction. Across 100 subscribers, processing costs $99/month ($1,188/year). Confirm current pricing and applicable transaction limits before relying on this example.
Frequently asked questions
Should I completely replace credit cards on my website?
A hybrid or dual-rail approach can make sense. Businesses can offer PayTo or PayID alongside cards and assess customer preference, cost, payment outcomes and operational needs rather than assuming one method suits every customer.
What happens if a customer has insufficient funds when a PayTo agreement runs?
PayTo can provide status information for an attempted payment, but a business should plan for pending, rejected, returned or insufficient-funds outcomes and confirm any applicable fees and retry options with its provider.
Compare payment costs and customer journeys
Assess ShaBaas Pay to accept PayTo and Pay by Bank alongside your existing checkout options.