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. Image File history File links Ideal. ... Image File history File links Ideal. ...

The participating banks in iDEAL are: Rabobank, SNS Bank, ABN AMRO, Postbank and ING Bank, together serving the vast majority of the Dutch online banking market. Rabobank is a Dutch cooperative banking institution with offices all over the world, although primarily in the Netherlands. ... ABN AMRO (Euronext: AAB, (NYSE: ABN)) is the largest bank in the Netherlands and has operations all over the world, its history going back to 1824. ... Postbank AG (The German postal bank AG) is since the 2. ... ING Group N.V. (NYSE: ING), (Euronext: INGA)is a financial institution of Dutch origin offering banking, insurance and asset management services. ...

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. Two-factor authentication (T-FA) is any authentication protocol that requires two independent ways to establish identity and privileges. ... In computer security, challenge-response authentication relies on the possession of a secret of some sort to perform authentication. ... Token can mean one of several things: In computer science, specifically lexical analysis, a token is usually a word or an atomic element within a string. ... A debit card is a plastic card which provides an alternative payment method to cash when making purchases. ... Outdoor ATMs may be free-standing, like this kiosk, or built into the side of banks or other buildings An automatic teller machine, automated teller machine (ATM) or cash machine is an electronic device that allows a banks customers to make cash withdrawals and check their account balances without... A chargeback occurs when a merchant is required to issue credit to a cardholders account. ...

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. Credit cards A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. ...

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

External links

• iDEAL site [1] (Dutch)

• Rabobank [2]

• ABN AMRO Bank [3]

• Postbank [4]

• ING Bank [5]