Experts issued a warning about a specific type of online payment (Image: Getty)
Finance experts have issued a warning when it comes to buying items on Amazon, eBay, or other online retailers. According to them, this new payment method could leave you unprotected.
In a video uploaded to the Money Saving Expert (MSE) website, a member of the MSE group shared advice about a lesser-known payment option on the internet. You may have seen it come up when you go to purchase something but might not know what it actually does.
It is known as “pay by bank” and is essentially an instant bank transfer, which bypasses traditional card networks.
While this may seem like the easiest option to therefore use, it does come with some risks.
In an MSE video titled “think twice before pressing this button on Amazon”, an expert said: “Don’t use this new pay by bank option on Amazon, eBay, or elsewhere until you’ve watched this video.”
WARNING: Have you started to notice “pay by bank app” options at online check-outs. 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…
— Martin Lewis (@MartinSLewis) January 29, 2025
He explained more: “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 protections are known as section 75 on credit cards and charge back 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 said.
With this in mind, it is “safest” to stick with paying by card especially if you’re spending a big amount of money. He said: “So if you’ve got a big important purchase, it’s safest to stick with cards.”
In a separate article published by MSE, the team claimed that millions of people are already using it pay by bank. According to the latest available figures from the Open Banking industry body, there were more than 30 million successful pay by bank transactions in the UK in January 2026.
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How pay by bank works
The MSE team described what “normally” happens when you choose to pay by bank:
- 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
This warning had previously been made by MSE founder Martin Lewis. Writing on X in 2025, Martin said:
“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 more information, visit MSE here.
