Overview

• Which? cautions that pay by bank offers no Section 75 or chargeback protection, exposing users to losses on faulty, undelivered or future-dated purchases.
• Consumers retain general rights under the Consumer Rights Act but may face hurdles enforcing claims and could end up in small claims court.
• The payment method processes direct bank transfers without card details, delivering instant refunds, reduced fraud risk and quicker merchant settlement.
• Retailers including WHSmith, Just Eat, Funky Pigeon and Ryanair are rolling out pay by bank, increasing its use for high-value and event bookings.
• UK Finance and The Payments Association stress the need for consumer awareness of varying payment protections and call for formal regulatory safeguards.