Financial journalist Martin Lewis has issued a stark warning to anyone in the UK who uses their bank card to set up regular payments, cautioning that they may be left with significantly weaker consumer protections.
The Critical Difference: Card Details vs. Bank Details
During a recent episode of his BBC podcast, the founder of Money Saving Expert highlighted a crucial but often misunderstood rule. He explained that the method you use to authorise a regular payment—such as for a gym membership, magazine, or streaming service—directly dictates your level of protection.
If you provide your long card number, you are setting up a recurring card payment. Mr Lewis stated that this essentially gives the company permission to "take a payment when they want to take a payment." Each transaction is treated as an individual payment, even though it repeats. This method is commonly used for subscriptions like Netflix or Disney+.
Conversely, if you provide your bank account number and sort code to set up a direct debit, you benefit from the robust, statutory Direct Debit Guarantee.
'Far Stronger' Protections of the Direct Debit Guarantee
Martin Lewis emphasised that the safeguards for direct debits are "very powerful" and specifically designed to protect the account holder. He outlined two key advantages:
- Easy Cancellation: You can cancel a direct debit at any time simply by contacting your bank or building society, which must then stop all future payments.
- Instant Refund on Disputes: If a direct debit is taken in error, on the wrong date, for the wrong amount, or without proper authority, you are entitled to an immediate refund from your bank. This refund is issued before any investigation begins.
The Risks of Recurring Card Payments
In contrast, disputing a recurring card payment is "far more difficult," according to Lewis. While you should be able to instruct your bank to stop such payments, he receives many reports where this fails, and customers are told to contact the payment provider directly.
Disputes are not instant and can be declined, as the process depends on the rules of the card scheme (like Visa or Mastercard) rather than a watertight statutory guarantee. Securing a refund can therefore be a lengthier and less certain process.
Another practical downside is that when you switch bank accounts using the Current Account Switch Service, your direct debits move across automatically. Recurring card payments, however, will not transfer, meaning you must manually update each one to avoid service disruption.
Key Takeaway for Consumers
The consumer champion's advice is clear: "It is always worth being aware, if you are making a payment and they are asking you for the card details, not your bank account details, you have far, far fewer protections than you do if you're paying with an actual direct debit."
His warning, delivered on 7th December 2025, serves as a vital reminder for anyone setting up ongoing payments to opt for a direct debit where possible to ensure the strongest financial safeguards.
