Money Saving Expert founder Martin Lewis cautions about the 'pay by bank app' checkout option, highlighting its limited consumer protection compared to traditional card payments.
Martin Lewis, the founder of Money Saving Expert, has issued an urgent warning about a 'quick and easy' online checkout option called ' pay by bank app ' that may not be as secure as it appears. This payment method, available at many retailers, allows users to approve transactions directly through their banking app, bypassing the need to enter card details. While this process can be faster, Lewis claims it offers 'little protection'. He explained: 'It's on the likes of Just Eat and Ryanair.
You don't give card details, just pick your bank, and log into the app (via biometrics) then it's done.' A variety of banks and card companies, including Barclays, Mastercard, and Santander, support this payment option, with merchants like Funky Pigeon and Caffe Nero signed up as retail partners. However, Lewis highlights that these transactions are registered as bank transfers rather than card payments. This means customers 'don't get the same refund rights like chargeback or Section 75 if something goes wrong.' Section 75 of the Consumer Credit Act 1974 protects consumers who use a credit card for purchases, while chargebacks allow customers to request a refund from their bank for services or goods bought on a debit card. Lewis stated that it's 'no biggie' to use 'pay by bank app' for small purchases but urged caution for 'big important transactions'. In response to comments on X, Lewis addressed concerns about HMRC using this payment method, stating: 'I'd be less worried about that (as long as it's the real HMRC) as that's something you may pay by bank transfer anyway (and this is just one of those) and not something you'd get 'purchase protection' on.' He hinted at further information about this payment option coming soon on Money Saving Expert. This warning follows MSE offering advice to the UK's 36.2 million credit card holders, with Lewis calling minimum payments an 'evil genius' technique used by lenders. He warned that minimum payments could pose 'danger' to finances, stating: 'They're designed to keep you in debt for decades, as you repay a percentage of what you owe, so payments reduce with the debt.
MARTIN LEWIS MONEY SAVING EXPERT PAY BY BANK APP SECURITY RISKS CONSUMER PROTECTION CARD PAYMENTS BANK TRANSFERS CHARGEBACKS SECTION 75
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Martin Lewis Warns of 'Seismic Change' to Facebook and Instagram Over New RuleMartin Lewis, a well-known consumer advocate, has expressed concern over Meta's (Facebook and Instagram's parent company) decision to replace fact-checkers with community-driven notes. Lewis, who has previously sued Facebook over scam ads, is worried that this change will lead to an increase in misinformation and a decrease in the platform's ability to identify and remove harmful content.
Read more »
Martin Lewis Warns Against Scrapping BBC TV LicenceMartin Lewis, the well-known financial journalist and TV presenter, has voiced his concerns about plans to abolish the BBC TV licence fee. Responding to reports that the Labour Party might phase out the fee before 2027, Lewis questioned whether those who don't watch BBC TV also avoid its website, radio stations, and podcasts. He presented funding options like advertising, subscription, and general taxation, sparking debate about the BBC's future funding model.
Read more »
Martin Lewis warns against 'evil genius' credit card habit that keeps people in debt for decadesMoney Saving Expert founder Martin Lewis urges people to repay more than the minimum amount on their credit cards to avoid paying thousands in interest and staying in debt for years. He highlights the common trap of only making minimum repayments, which prolongs debt and increases interest costs. Lewis emphasizes the benefits of paying a fixed amount or as much as possible each month, using examples to illustrate the significant savings achievable. He also advises prioritizing repayments on high-interest debts first.
Read more »
Martin Lewis warns it's your 'last chance' to slash energy billsThe Money Saving Expert founder took to X to make people aware on Thursday
Read more »
People claiming Attendance Allowance can get back pay using Martin Lewis tipThere are several ways to start a new claim, but only one can trigger back payments.
Read more »
Following Martin Lewis heating bill advice I found a 'life saver' £20 gadget'These heated hand warmers have been an absolute life-saver for me!'
Read more »