Should I pay an online seller with a bank transfer?

A direct bank transfer (ACH in the US, Faster Payments or BACS in the UK, SEPA in Europe) moves money from your account directly to the seller's account. Unlike a credit card payment, a bank transfer has no chargeback mechanism — chargeback is a card-scheme process, not a law — and no Section 75-style statutory protection for goods not delivered.

In the UK, Authorised Push Payment (APP) fraud reimbursement has been mandatory since 7 October 2024, covering Faster Payments and CHAPS transfers up to £85,000 per claim, split 50/50 between the sending and receiving bank, with exceptions where the consumer failed to take reasonable care. But this only applies if you were deceived into paying a fraudster — it does not cover a civil dispute with a genuine seller who takes your money and simply does not deliver, which is the more common outcome when an online marketplace purchase goes wrong. In the US, there is no equivalent mandate, and reimbursement depends on your bank's own policies. In both countries, the statutory purchase protections remain Section 75 of the Consumer Credit Act (UK) and the Fair Credit Billing Act (US) — not chargeback itself.

Bank transfers are appropriate for paying established businesses you have an existing relationship with, services from verified providers, or large transactions where a credit card's spend limit is a practical constraint. They are not appropriate for one-off purchases from strangers on classifieds, social media, or unknown websites.

If you must pay a small business or individual by bank transfer, verify their identity thoroughly, check reviews independently, and start with a small order rather than a large one. In the UK, the Confirmation of Payee system (where your bank checks the account name matches the sort code and account number) provides some protection against fraudulent bank details.