Online shoppers have been told to ‘think twice’ about the new option (Image: Getty)
People are being warned to “think twice” when it comes to choosing one convenient option when making major purchases online. Although it can save people time, the common payment feature could cost people basic protection rights if something goes wrong.
Pay by Bank has been appearing on sites like Amazon and eBay, offering a quicker way for shoppers to check out with their items without ever having to reach for their bank card. But, if problems come later, people might find they’ve knowingly opted out of help that is usually a legal requirement.
An MSE spokesperson said: “Don’t use this new Pay by Bank option on Amazon, eBay, or elsewhere until you’ve watched this video. 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 are Section 75 on credit cards and chargeback on 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.”
The personal finance team claims that, if people are about to make a “big important purchase”, then it would be “safest to stick with cards”.
What is Pay by Bank?
The Pay by Bank feature is simply a much quicker way to check out when online shopping at certain retailers. It’s faster because it doesn’t require any card or account details to be entered, becuase it’s all done via a bank transfer.
It’s because of this ‘transfer’ rather than transaction difference that customers may be unknowingly giving up key protections against problems. MSE founder Martin Lewis previously said in 2025: “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.”
The MSE website laid out how the process of using Pay by Bank typically goes:
- You pick your bank from a list
- You get sent to your bank’s app or online banking to log in (using your fingerprint, face, PIN or password)
- Your bank shows the pre-filled details of the payment (including the amount and recipient)
- You approve the payment through your bank and get sent back to where you started for confirmation
Pay by Bank is accepted by most UK banks, like Lloyds, Halifax, Santander, Barclays and more. At the time of writing, it is mostly being used for credit card bill payments, moving cash between bank accounts with different providers and online purchases.
In a separate Instagram post, the MSE team dives deeper into the new option that has been made available to online shoppers using platforms like Amazon and eBay. It explained why shoppers would benefit from taking a few extra seconds to input their card details when shopping online.
It said: “Section 75 protects you when you buy something that costs between £100 and £30,000 using a credit card. If there’s a problem with what you’ve bought, for example, it’s broken or doesn’t arrive at all, then your credit card company has a legal responsibility to come to the rescue. It’s extremely powerful – there’s a reason we call it your financial superhero.
“Chargeback is another way to get your money back if a retailer refuses to refund you. Unlike Section 75, you can use it if you paid with a debit card as well as a credit card, and it works for spends under £100.”
Although in most cases this new feature will save people time when checking out online, it is important to be aware that it comes at a price. Shoppers who expereince issues may struggle to reclaim their own money if something goes wrong.