A BIG high street banking chain is axing a lifeline service for all customers within weeks, with M&S Bank, a joint venture between HSBC and M&S since 2004, pausing the in-store credit card payments, bank giro credit (ដ$con Vit), and travel insurance options from in-store payment processes until October 2023. The decision came after a letter confirming the permanent suspension of cheque payments via bank giro for banks, post offices, and post-clarity systems, marking a significant shift in how the bank operates. This move, according to campaigners, threatens to leave older and vulnerable customers, who are particularly]$text{R Ruiz Altmann from textit{Age UK}}$?, who have been left behind in an increasingly digital world.
M&S Bank currently offers credit cards, personal loans, travel insurance, store payment cards, and a buy now pay later credit to over three million customers in the United Kingdom. Despite these services, the axholding appears to harm older and vulnerable customers, particularly those who have been consistently left behind by the digital transformation. Ms Ros Altmann argued that she is being pushed away from her loyal customer base, highlighting the bank’s decision as another blow to those who find themselves underperforming in the age of digital banking.农田span General Manager Caroline Abrahams also criticized the move, stating that reducing payment options would limit some older people, especially those who are socially engages via giro forms,數據 computer, while the bank’s current model essayizes some difficulties for younger customers.
The bank has defended its move, noting that only 1% of its customers currently use the older payment methods. A spokesperson stated that the decision to terminate legacy payment options has been introduced via the app, the direct debit service, and directly access the bank, ensuring that bank branches continue to remain operational. The axholding aims to democratize financial services and promote digitalunderline approaches, but critics argue that it risks leaving older customers behind, who often rely less on in-store banking solutions.
M&S Bank’s charitable director, Age UK’s Director of Impact, London Robinpwalt, added that this decision “brings real benefits to the nation” by reducing reliance on physical banking locations. However, her concerns about the sustainability of the model and the work of its customers are scarily real. While the bank’s axholding appears to be a steady, permanent step towards equalizing service, advocates worldwide argue that digital banking are simply fads that won’t last forever. They also note that the transition period has been unclear, leading to criticism that the axholding “flies in the face of the individual preferences of our customers.”
As a rewards credit card brand, M&S Bank prioritizes rewards points, which it uses to reward credit card purchases through regular statements and rewards vouchers, as well as to encourage cash contributions generally. However, the bank’s rewards model has faced criticism from consumers and regulators, with some pointing to their focus on rewards rather than on actual value. The PX and Digital Rewards vouchers have different validity periods and fee structures, with traditional rewards vouchers (Paper vouchers) failing for 15 months and digital rewards vouchers (Digital vouchers) for 17 months.
In the coming weeks, M&S Bank is also making changes to its current accounts offerings, including increasing fees for cash payments, cheque transactions, and online transfers. On August 30, cash payments into and out of business accounts will increase from £70p to £95p, with similar increases expected for cheque transactions. The bank is also raising fees associated with the bank-to-bank payment system, BACS, for each individual transaction or instruction, from 18p to 21p. Additionally, Santander, a global currency provider, is closing its 123 Lite current account, which offered up to 3% cashback on household bills at a £2 monthly fee, on August 21. Customers affected by this closure will automatically migrate to Santander’s Everyday Current Account, which has no monthly fee but does not include cashback benefits.
Finally, the bank is considering changes to its Edge Credit Card, which will now charge a monthly fee of £4 instead of the previous £3. The bank is also closing its 1230 Current Account branch network and plans to remove Lloyds Bank, Halifax, and Bank of Scotland branches from using the Everyday Current Account service. M&S Bank has also lost the ability to deposit cheques at Post Office branches nationwide on December 31, 2023. As a rewards credit card brand, M&S Bank is actively trying to address customer concerns about rewards programs and fees, but their profitability and customer satisfaction are facing growing challenges. The bank is actively steering toward a more streamlined and profitable model while also dismissing offers aimed at filling financial gaps and lowering the costs of credit and banking services.
