M&S Bank Banning Cash Payments for Elderly Customers

M&S Bank has permanently stopped accepting payments in store, via cheque, and by giro credit, citing that only 1% of customers use these methods. Campaigners fear this will harm pensioners and those who prefer to pay in cash. M&S Bank claims that most customers use digital channels, but critics argue that this will marginalize older and disabled people who may not have access to electronic banking.

M&S Bank, a joint venture between HSBC and retailer M&S, has permanently ceased accepting payments in stores, via cheque, and by giro credit. The bank cited that only 1% of its customers use these legacy payment methods, with the majority opting for digital channels such as direct debit, online, and phone payments. However, this decision has drawn criticism from campaigners who fear it will disadvantage pensioners and those who prefer to pay in cash [1].

The bank's move was initially temporary, implemented in April, but has now been made permanent. Starting October, M&S Bank will no longer accept cheques or giro payments over bank, building society, or post office counters. Baroness Ros Altmann, a pensions expert and older people's campaigner, expressed concern that this move will push away loyal older customers who have shopped with the bank for decades [2].

Caroline Abrahams, Charity Director at Age UK, echoed similar sentiments, noting that reducing payment options will limit some older people, especially those not comfortable with online banking or preferring cash. She emphasized that many older and disabled individuals lack access to electronic or digital banking and rely on traditional payment methods [2].

M&S Bank defended the decision by stating that the axed methods were "legacy payment options" used by a very small proportion of customers. They also introduced a "pay-by-bank" option via the M&S Bank app, making it easier for customers to pay their credit card via digital channels [1].

The decision to phase out these payment methods comes amidst a broader trend of retailers and banks moving towards digital payments due to concerns about security and efficiency. However, critics argue that this shift may marginalize older and disabled people who may not have access to electronic banking or prefer cash for budgeting purposes.

References:
[1] https://www.thisismoney.co.uk/money/saving/article-14982901/M-S-Bank-bans-customers-making-payments-cheque-giro.html
[2] https://www.thisismoney.co.uk/money/markets/article-14992217/M-S-Banks-digital-push-punishes-elderly-say-campaigners.html