This option could reduce your online shopping protection
Experts issued a warning about a specific type of online payment(Image: Getty)
Financial experts have issued a caution regarding purchases on Amazon, eBay and other online platforms. They warn that this emerging payment method could leave you without protection.
In a video uploaded to the Money Saving Expert (MSE) website, a member of the MSE team offered guidance about a lesser-known payment option available online. You may have encountered it during checkout but might not understand what it entails.
Known as “pay by bank”, it essentially functions as an instant bank transfer that sidesteps conventional card networks. While this might appear to be the most straightforward option, it carries certain risks.
In an MSE video titled “think twice before pressing this button on Amazon”, an expert warned: “Don’t use this new pay by bank option on Amazon, eBay, or elsewhere until you’ve watched this video.”
He said: “Pay by bank is a quicker, easier way to complete a normal bank transfer, but you lose vital purchase protections you normally get when paying on plastic.”
These safeguards are referred to as Section 75 on credit cards and chargeback on both credit and debit cards. “Both of these give you an extra way to try getting your money back if something goes wrong and the retailer is not playing ball,” he explained.
Given this, it is “safest” to continue paying by card, particularly for larger purchases. He advised: “So if you’ve got a big important purchase, it’s safest to stick with cards.”
In a separate piece published by MSE, the team revealed that millions are already using pay by bank. According to the most recent figures from the Open Banking industry body, there were over 30 million successful pay by bank transactions in the UK in January 2026.
How pay by bank operates
The MSE team outlined what “normally” occurs when you opt to pay by bank:
- You select your bank from a list
- You’re redirected to your bank’s app or online banking to log in (using your fingerprint, face, PIN or password)
- Your bank displays the pre-filled payment details (including the amount and recipient)
- You authorise the payment through your bank and are redirected back to where you started for confirmation
This caution had previously been issued by MSE founder Martin Lewis. Posting on X in 2025, Martin stated: “Warning: Have you started to notice ‘Pay by Bank app’ options at online checkouts? If so, it’s quicker, it’s easier, but be aware there’s little protection.
“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.
“Yet ultimately it’s just a bank transfer, which means you don’t get the same refund rights, like chargeback or section 75, if things go wrong that you do when you pay by card. So for small things it’s no biggie, but beware with big, important transactions.”
For further details, visit MSE here.
