logo
Online Shoppers Warned About New Payment Method

Online Shoppers Warned About New Payment Method

Yahoo13-06-2025
Online shoppers have been increasingly provided the option to pay directly from their bank accounts instead of having to put in all of their credit or debit card information. While this might be convenient for some shoppers and offer some perks, it also carries some significant risks.
These new "pay by bank" options have some perks for customers, allowing refunds to be processed instantly and allowing the transacrion to proceed without card details being shared. It also has some perks for businesses, allowing them to bypass card transaction fees and receive customer funds immediately.
While this might be alluring to consumers and businesses alike, there are some security concerns.
While the "pay by bank" options are increasingly common, Which? money editor Jenny Ross issued a pretty major warning for consumers, pointing out that these sort of payments lacks the Section 75 and chargeback protections associated with other payment methods.
Section 75 of the Consumer Credit Act can hold credit card companies liable for faulty or unfulfilled purchases. This allows shoppers to potentially file chargebacks with their credit card provider and receive refunds even if the retailer fails to reimburse them. These same protections don't exist for "pay by bank" options.
'Innovations like pay by bank present opportunities for businesses and consumers alike, but they're not without risk, particularly as they lack the rigorous purchase protections you get when paying by card," Ross said via The Independent.
'We're calling on the regulator to act to ensure consumers can use pay by bank with confidence, but in the meantime, we'd urge consumers to think carefully before using it to book events or make substantial purchases – for now, your good old-fashioned credit or debit card may be the best option.'
Obviously, this is an important thing for customers to consider before using the "pay by bank" option for their online shopping.
Online Shoppers Warned About New Payment Method first appeared on Men's Journal on Jun 13, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Leonteq AG (XSWX:LEON) (H1 2025) Earnings Call Highlights: Strong Profit Growth Amidst Revenue ...
Leonteq AG (XSWX:LEON) (H1 2025) Earnings Call Highlights: Strong Profit Growth Amidst Revenue ...

Yahoo

time37 minutes ago

  • Yahoo

Leonteq AG (XSWX:LEON) (H1 2025) Earnings Call Highlights: Strong Profit Growth Amidst Revenue ...

Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Leonteq AG (XSWX:LEON) reported a 33% year-on-year increase in underlying profit before taxes, reaching CHF 17 million in the first half of 2025. The company disclosed a strong CET 1 ratio of 14.4% as of June 30, 2025, exceeding the regulatory minimum requirement of 10.5%. Leonteq AG has taken decisive actions to restore profitability while maintaining strong regulatory discipline. The company has announced new financial targets for 2027, aiming for significant revenue growth with a broadly flat cost base. Recurring revenues from actively managed certificates continued to register notable growth, indicating strong performance in this segment. Negative Points Total operating income decreased by 7% to CHF 124 million year-on-year, mainly due to lower net fee income and a reduction in net interest results. The overall turnover decreased by 8% year-on-year to CHF 15 billion, with a significant drop in turnover with historic partners. Net fee income from large ticket transactions decreased substantially to CHF 2.4 million in the first half of 2025 compared to CHF 10.6 million in the prior year period. The company faced challenges due to uncertainty around legacy compliance matters, which weighed on client activity. Interest rate hikes in past years reduced the relative attractiveness of Leonteq AG's yield enhancement products, impacting performance. Q & A Highlights Warning! GuruFocus has detected 6 Warning Signs with XSWX:LEON. Q: Could you explain the impact of the enhanced regulatory and risk framework on the decrease in large transaction results and provide an outlook for fee income in H2? A: Hans Wiedler, CFO: The decrease in large ticket transactions from CHF 10.6 million to CHF 2.5 million in H1 2025 was influenced by legacy compliance issues affecting client activity. However, we do not anticipate regulatory changes impacting large transactions. We expect these transactions to return to their usual range of CHF 8 to 12 million in the future. Q: Can you provide an outlook for your new business initiatives, particularly AMC, and elaborate on your plans for expanding third-party product distribution? A: Christian Spilo, CEO: AMC is a strong existing business, and we expect continued growth due to market demand and our competitive offering. For third-party product distribution, we plan to leverage our large network to distribute products like private equity and quantitative investment strategies, which we don't manufacture in-house, thus generating fees efficiently. Q: What does "meaningfully above 15%" mean in the context of your new capital return policy? A: Christian Spilo, CEO: The target CET1 ratio is 15%, and "meaningfully above" means maintaining a stable ratio above this threshold before distributing excess capital through share buybacks. Q: Can you explain the decline in volumes with historic partners and the drop in product margins in H1? A: Hans Wiedler, CFO: The decline in volumes with historic partners is due to varying funding appetites and risk exposures. New partners increased their contribution by 14%, partially offsetting this. Regarding product margins, competition and technology drive a long-term trend of margin reduction, despite temporary increases during volatile periods. Q: Could you provide more details on the retail flow business and its development? A: Hans Wiedler, CFO: We have over 3,000 products listed on the Swiss Stock Exchange and plan to expand into the German market by 2026 and Italy thereafter. The retail flow business is developing well, with increasing demand and a meaningful contribution expected to grow further. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store