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