AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
Part of the guideHow to get paid in Nigeria: transfers, checkout and invoices
The short answer
A bank transfer checkout shows the shopper a temporary account number and the exact amount at the end of an online order; they pay from their own bank app and the store confirms the order within seconds. It suits Nigeria because most electronic payment value already moves by instant transfer, it usually costs less than a card payment, and there are no card chargebacks. The main things to design for are expiry, wrong amounts and confirming payment only from your provider.
Most Nigerian shoppers would rather pay by transfer than type card details. NIBSS figures for the first quarter of 2025 put instant transfers at about ₦285 trillion of roughly ₦317 trillion in tracked electronic payments. A bank transfer checkout brings that habit into an online store without the old problem of matching payments by hand. It is one of several collection methods compared in our guide to getting paid in Nigeria.
What the shopper sees
From the customer's side, a good transfer checkout takes under a minute:
- The shopper chooses "Pay by bank transfer" at checkout.
- The page shows an account number, the bank name, the business name and the exact amount, often with a countdown.
- The shopper opens their own bank or fintech app, pastes the number, sees your business name on name enquiry, and sends the money.
- Within seconds the checkout page updates to "Payment received", and the order confirmation follows by email or SMS.
No card details, no one-time password from a card issuer and no redirect to a third-party site. The shopper uses the app they already trust.
What happens behind the page
Under the hood, the checkout creates a dynamic virtual account for that one order. Our explainer on virtual accounts in Nigeria covers the mechanics. The money travels over NIBSS Instant Payment, lands in the seller's settlement account, and the provider sends a server-to-server notification. The store releases the order only when that notification arrives and checks out.
- The account number is the reference. The shopper does not need to type anything in the narration.
- The amount is checked. The provider compares what arrived with what was expected.
- The account expires. After a set window, the number stops accepting payment for that order, so a late payment cannot be confused with a new one.
- The webhook is signed. Your server verifies the signature before marking the order as paid.
Transfer checkout versus card checkout
Both have a place. The table uses published pricing as of October 2026; providers differ and large merchants negotiate.
| Bank transfer checkout | Local card via gateway | |
|---|---|---|
| Typical published fee | Varies; Pryme Checkout is free | Paystack lists 1.5% + ₦100, capped at ₦2,000 |
| Speed to your account | Seconds with some providers; others pay out on a schedule | Usually next business day |
| Chargebacks | None in the card sense | Yes, raised by the cardholder's bank |
| Customer needs | Any Nigerian bank or fintech app | A working card and issuer authentication |
| Common failure | Shopper pays late or the wrong amount | Card declined or authentication fails |
| Foreign buyers | Rarely practical | Works, at higher international fees |
Worked example: a fashion store
A Lagos clothing store sells 1,200 orders a month at an average of ₦45,000, or ₦54 million. At 1.5% plus ₦100, each card payment costs ₦775, so cards for every order would cost ₦930,000 a month. At 0.5% capped at ₦2,000, each transfer checkout payment costs ₦225, or ₦270,000 a month. If 80% of shoppers choose transfer and 20% choose card, the monthly bill is about ₦216,000 for transfers plus ₦186,000 for cards, roughly ₦402,000 in total. That is a saving of about ₦528,000 a month against card-only, before counting any chargebacks avoided.
Those figures change with your basket size. Fees with caps reward larger orders; flat fees weigh more heavily on small ones. Our comparison of payment gateway fees in Nigeria shows how to run the numbers for your own store.
When a card checkout is still the better choice
Transfer checkout is not right for every sale. Subscriptions that renew on a stored card cannot run on transfers, because the customer has to push each payment themselves. Buyers paying from abroad rarely hold a Nigerian bank app. Some customers want to spread a purchase on a credit card. And a few shoppers simply trust card checkout more for a store they have never used. Offering both methods, with transfer shown first, captures the majority without turning anyone away.
Designing for the awkward cases
Transfer checkouts fail in different ways from card checkouts. Decide your rules before launch.
- Shopper pays after the account expires
- Most providers either reject the transfer back to the sender or hold it for manual review. Ask yours which, and tell shoppers how long the number is valid.
- Shopper underpays
- Choose between rejecting, holding the money and asking for a top-up, or accepting a small tolerance. Write the rule down.
- Shopper overpays
- Refund the difference promptly or hold it as store credit with the customer's agreement.
- Shopper pays twice
- Your system should recognise a second payment against a closed order and refund it, not ship twice.
- Shopper sends a screenshot
- Do not release goods on it. Fake alerts are common. Wait for your own confirmation.
- Bank delay
- Occasionally a transfer is debited from the shopper but held at their bank. Show a clear message and a support contact rather than letting the shopper pay again.
Setting it up
- Choose a provider that offers per-order account numbers, signed webhooks and a clear policy on late and wrong payments.
- Show transfer as the first payment option for Nigerian shoppers, with card alongside for those who prefer it.
- Display your business name exactly as the shopper will see it in their bank app.
- Set a sensible expiry window, long enough for someone switching apps but short enough to avoid stale orders.
- Verify every webhook signature and make the handler safe to run twice.
- Reconcile daily against the provider's transaction list and assign someone to handle exceptions.
A transfer checkout cannot be charged back by a card issuer, but it is not immune to fraud. Funds sent from a compromised account can be recalled, so keep delivery records. Our article on chargebacks and reversals in Nigeria covers this.
Where Pryme fits
Pryme Checkout (Nigeria only) is a bank-transfer checkout, free of charge. Because it takes bank transfers rather than cards, card chargebacks do not arise, though transfers linked to fraud can still be frozen or recalled. In Nigeria, Naira deposits are held by Solid Allianze Microfinance Bank, licensed by the CBN and insured by the NDIC up to the applicable limit. For card payments or foreign buyers, use a card gateway alongside it. See the main payments guide for how to combine methods.
Questions people ask
How does pay with bank transfer work on Nigerian websites?
The checkout shows a temporary account number and the exact amount. You pay it from your bank app, and the store's provider confirms receipt within seconds and releases your order.
Is bank transfer checkout cheaper than card payments in Nigeria?
Usually, yes. Published card pricing from one large gateway is 1.5% plus ₦100, capped at ₦2,000, while transfer checkouts often charge less. Compare providers on your own average order value.
What happens if I pay after the transfer account expires?
It depends on the provider. Many return the transfer to the sender automatically; others hold it for manual review. Contact the seller with your transaction details if the order does not confirm.
Can a customer charge back a bank transfer checkout payment?
There is no card chargeback for transfers. Banks can still freeze or recall money linked to fraud, so sellers should keep proof of delivery.
Sources
- E-Payment Transactions Rise 17.7% to N284.99 Trillion in Q1 2025 (THISDAY, citing NIBSS) · accessed Oct 2026
- Paystack: Transactions pricing (Nigeria) · accessed Oct 2026
- NIBSS: NIBSS Instant Payment (NIP) · accessed Oct 2026
- Paystack: How to resolve chargebacks · accessed Oct 2026
- BusinessDay: CBN declares no transactions on accounts without BVN, NIN from March 2024 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.