What Is EPS?

EPS (Electronic Payment Standard) is an Austrian online payment method that enables consumers to pay for online purchases directly from their bank accounts via their online banking portal. Developed jointly by Austrian banks and the Austrian government, EPS has been operational since 2001 and is one of the most trusted and widely used payment methods for e-commerce in Austria.

## What Is EPS?

EPS is a redirect-based bank transfer system. When a consumer selects EPS at checkout, they choose their bank from a list, are redirected to their bank's secure online banking environment, and authorize a pre-filled transfer. The payment is irrevocable once authorized — unlike card payments, EPS transfers cannot be charged back. The merchant receives instant confirmation that the payment has been authorized.

EPS is supported by virtually all Austrian banks, including Erste Bank, Raiffeisen, Bank Austria (UniCredit), BAWAG, Volksbank, and many regional institutions. This coverage means that almost every Austrian with an online banking account can use EPS.

## How EPS Works

The EPS payment flow is straightforward and secure. At checkout, the consumer selects EPS and chooses their bank. They are redirected to their bank's secure login page, where a transfer form is pre-filled with the merchant's details, the payment amount, and a unique reference. The consumer authenticates (using their online banking credentials and any additional security factors required by their bank) and confirms the transfer. The bank authorizes the payment and notifies the EPS system, which sends real-time confirmation to the merchant.

The entire process typically takes under two minutes. From the merchant's perspective, the payment behaves like a card payment in terms of speed — instant authorization enables immediate order fulfillment. However, unlike cards, there is no chargeback risk because the transfer is initiated and authorized by the consumer's bank.

## Fees

EPS fees for merchants are typically lower than card processing fees. Merchants pay approximately 0.2-0.5% per transaction plus a small fixed fee, depending on the acquirer and volume. There are no interchange fees as with card payments. Consumers pay nothing extra for EPS — it is treated as a regular bank transfer by their bank.

## Why EPS Matters for Austria

Austria has a population of approximately 9 million, with high internet penetration and a strong preference for bank-based payment methods. Many Austrian consumers prefer paying by bank transfer rather than using credit cards online, viewing it as more secure because they authenticate within their trusted banking environment. EPS captures this preference and is the most popular alternative to cards for Austrian e-commerce.

For international merchants targeting Austrian consumers, adding EPS can increase conversion rates significantly. A checkout that only offers card payments misses the large segment of Austrian consumers who prefer bank transfers. PSPs like Stripe, Adyen, and Mollie support EPS, making integration straightforward.

## EPS vs SEPA

EPS is an instant online payment method specifically for Austrian e-commerce transactions. SEPA is the broader European bank transfer infrastructure. An EPS payment results in a SEPA credit transfer, but the key difference is that EPS provides real-time authorization to the merchant, whereas a standard SEPA transfer initiated manually would take up to one business day to settle with no instant notification. EPS adds the real-time confirmation layer that makes it viable for e-commerce.