Amazon and eBay shoppers are being urged to "think twice" before using a new payment option called Pay by Bank, which could leave them without crucial purchase protections. Money Saving Expert (MSE) has issued a warning that while the method offers convenience, it may not be suitable for major purchases.
What is Pay by Bank?
Pay by Bank is a payment option appearing on sites like Amazon and eBay, allowing shoppers to complete transactions quickly via bank transfer without needing a credit or debit card. However, MSE warns that this method bypasses legal protections normally required for card payments.
Loss of Key Protections
According to an MSE spokesperson, "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."
The protections lost include Section 75 on credit cards and chargeback on both credit and debit cards. Section 75 legally requires credit card companies to refund purchases between £100 and £30,000 if goods are faulty or not delivered. Chargeback offers a similar remedy for debit and credit card purchases under £100.
Advice for Shoppers
MSE advises that for "big important purchases," it is "safest to stick with cards." Founder Martin Lewis previously stated 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."
MSE emphasizes that Section 75 is "extremely powerful" and calls it "your financial superhero." Chargeback, while not a legal requirement, provides an additional route to recover funds when retailers refuse refunds.
Shoppers are encouraged to consider the risks before opting for Pay by Bank, especially when making significant purchases.
