Martin Lewis issues warning over 'easy' online bank app

The Independent

Martin Lewis issues warning over 'easy' bank app used by major providersSource This Morning, ITV

Transcript

00:00pay-by-bank app, which people will have started to see,

00:02when you get to paying online,

00:04there are lots of different options now.

00:05Now, pay-by-bank app is growing.

00:07You've been able to do it for a while on HMRC

00:09or paying off your credit cards,

00:10which I'm less worried about,

00:11but it's starting to come into retail.

00:13Just Eat have got it, Rhinair have got it,

00:14others have got it.

00:15Now, what happens by pay-by-bank app?

00:17It's convenient and it's quick.

00:19That's the positive.

00:20You basically, it says pay-by-bank app,

00:21you scroll down, you find your bank,

00:23you press your bank, it goes to your bank app,

00:25you do the biometrics, you know,

00:26your face or your fingerprint, it opens it up, you're paid.

00:29Don't need to put any details in.

00:30It feels marvellous.

00:32Yeah, but, yes.

00:34For years, I have warned people against making purchases

00:38via cash or cheque or bank transfer

00:41because you have no purchase protection.

00:44Pay-by-bank is a bank transfer.

00:47I mean, all it is, is a bank transfer

00:48in a modern, convenient, technological way.

00:51Now, the way you can be most protected

00:53when you're paying for something

00:54is paying on a credit card for an item over 100 pounds

00:57that gives you section 75 protection,

00:59which means if things go wrong,

01:00the credit card company is jointly liable with the retailer.

01:03Retailer goes bust, you can go to the credit card firm.

01:05If there's a problem with, you know,

01:07not satisfactory quality,

01:08you can take it to the credit card firm.

01:09Second to that is a debit card

01:11or a credit card under 100 pounds, which has chargeback,

01:14which is internal protections of the card firms,

01:16which means you can get your money back.

01:18You don't get that with pay-by-bank app.

01:21I'm not saying don't use it.

01:23I don't care about HMRC and credit cards

01:24because it's not a purchase.

01:26I'm saying in small purchases, you know,

01:28if you get yourself a takeaway and it costs 15 quid

01:30and something goes wrong, you can shoulder it.

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