Martin Lewis issues major online check-outs warning over 'pay by bank app'

The personal finance expert warned against the 'easy' measure which offers 'little protection' (Image: Getty)

Martin Lewis has issued a major warning to anyone doing their shopping online about a “quick and easy” option that might not be as safe as it seems.

The personal finance whiz shared the tip on the social media platform X, asking his followers to watch out for the “pay by bank app” options at online check-outs.

While the alternative payment option, which requires users to open their banking app to approve the transaction, might save time and effort, it might come back to bite buyers in the long run, Mr Lewis warned.

Rather than a card payment, the transaction is registered as a bank transfer - meaning that customers “don’t get the same refund rights” if things go wrong.

The 'easy and quick' mistake could cause problems in the long run (Image: Getty)

“For small things, it’s no biggie,” he said. “But beware with big, important transactions.”

The man behind MoneySavingExpert.com said the option had begun appearing at check-outs on apps from food delivery company Just Eat to budget airline RyanAir.

“It’s quicker, it’s easier but beware [that] there’s LITTLE PROTECTION,” he added.

Section 75 of the 1974 Consumer Credit Act gives customers the right to claim a refund if they use a credit card or point of sale loan to make a purchase, and chargebacks are the more commonly used way to get a refund for goods or services bought with a debit, credit or charge card.

Such “refund rights” are not guaranteed when payments become bank transfers, Mr Lewis said.

He added that “more [would be] coming soon” on the issue on his free financial advice website.