Digital advancements at M&S Bank inadvertently disadvantage the elderly, according to critics.
M&S Bank Bans Cash, Cheque, and In-Store Payments for Credit Card Bills
M&S Bank has announced a policy change that will see the discontinuation of cash, cheque, and in-store payments for credit card bills. This move is aimed at streamlining payment processes and reducing operational costs linked to handling traditional payment methods. However, the decision has sparked criticism from pensions expert and older people's campaigner, Baroness Altmann, who argues that the move may affect a significant number of people, particularly older and disabled individuals who may not have access to electronic or digital banking and rely on cash and cheques[1].
According to M&S Bank, only 1% of their customers use the methods being banned. As a result, the bank has introduced a 'pay-by-bank' option for credit card payments via their app, and account holders can still pay in money at a bank, but not through giro credit. Customers can also pay by direct debit or via their bank[1].
The ban on store payments, cheques, and giro credit will take effect from October. This move may impact pensioners and those who prefer to pay in cash, as M&S Bank has permanently banned account holders from paying in money in stores and has stopped accepting cheques or payments over bank, building society or post office counters[1].
Caroline Abrahams, charity director at Age UK, has expressed concern that the reduction of payment options by M&S Bank may limit some older people, especially those not online or who prefer to use cash. Age UK's research indicates that not everyone is comfortable banking online or using apps, with 27% managing their account through their branch and 31% being uncomfortable with the idea of banking online[1].
Baroness Altmann argues that older and disabled people may not have access to electronic or digital banking and may rely on cash and cheques. She suggests that the move may affect a significant number of people, despite being a minority, due to M&S Bank's large customer base[1].
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[1] Source: Various news articles on the topic.
- Despite the small percentage of M&S Bank customers who currently use cash, cheque, and in-store payment options for credit card bills, concerns have risen about the impact on older and disabled individuals who rely on these traditional methods and may not have access to electronic or digital banking.
- As M&S Bank ceases to accept payments in cash or cheque in stores, and discontinues giro credit, some older people may find it challenging to manage their payments due to limitations in online banking skills or preferences.
- In light of the growing concerns regarding the reduction of payment options for some customers, particularly older and disabled individuals, potential solutions could include revising the bank's policy or promoting financial education initiatives to help more people become comfortable with electronic and digital banking options.
