Martin Lewis’s Debit-Card Warning — What He Said, what it means for you, and exactly what to do next

Martin Lewis — founder of MoneySavingExpert and one of the UK’s best-known consumer finance voices — has again warned people to be careful about relying on debit cards as their default payment method. His short message is simple but important: debit cards aren’t always “safer” than credit cards, and in some situations they can leave you with weaker legal protection or more expensive debt. This article explains what Martin actually said, the rules behind the differences, the real risks (fraud, overdrafts, weaker legal cover), and step-by-step actions you can take today to protect your money. I’ve included links to authoritative guidance and practical checklists you can follow immediately. (NationalWorld)

TL;DR — the headline you need

Martin Lewis cautions that if you go into debt on a debit account (an overdraft) you can be worse off than using a credit card, because overdraft rates are often higher and consumer protections differ. (NationalWorld)
Credit cards offer special legal protection for purchases between £100 and £30,000 under Section 75; debit cards do not. If a merchant disappears or goods are faulty, credit card users have stronger options to reclaim money. (MoneySavingExpert.com)
Martin’s advice is practical: avoid “danger” overdrafts; use credit cards responsibly for big purchases where Section 75 applies; keep contact details up to date for fraud checks; and know how to use chargebacks and the Financial Ombudsman. (NationalWorld)

What Martin Lewis actually warned about

On his podcast and in recent media coverage, Martin explained two linked points:

Many people assume “debit = safe, credit = risky.” That’s an oversimplification. If you are overdrawn, your debit account effectively becomes high-cost borrowing — and arranged overdraft APRs can be very high (he referenced examples where overdrafts can be more expensive than credit cards). (NationalWorld)
For larger purchases, a credit card often gives stronger protections. Under UK law (Section 75 of the Consumer Credit Act), your credit card provider can be jointly liable with the retailer for purchases between £100–£30,000; the same legal safety net doesn’t exist for debit cards (you must instead rely on merchant goodwill, chargeback or bank discretion). Martin pointed listeners to use that protection sensibly rather than reflexively using debit for everything. (NationalWorld)

Those two points are why he calls some debit-linked overdrafts “danger cards” — because people can fall into expensive debt while believing they’re doing the financially sensible thing.

The technical differences you should know (quick explainer)

Section 75 (credit cards) — legal protection

Applies when you pay by credit card for purchases from £100.01 to £30,000.
The card issuer is legally jointly liable with the retailer if goods/services are misdescribed, not delivered, or the retailer goes bust. This is a statutory right, not a voluntary scheme. (MoneySavingExpert.com)

Chargeback and debit cards

Debit card users do not have Section 75. Instead, they may rely on chargeback — an informal bank scheme and not a legal right. Chargebacks have time limits (often 120 days) and are reviewed case-by-case by banks. They’re helpful but weaker and less certain than Section 75. (MaPS)

Overdrafts vs credit cards

An unpaid or arranged overdraft on your current account is borrowing that can attract high interest and fees; in many examples overdraft APRs are comparable with — or exceed — some credit cards. If you carry debt, look at the APRs and fees rather than the “debit/credit” label. Martin’s point: if you must borrow, know which borrowing costs less and gives better consumer rights. (NationalWorld)

Fraud and scams — a separate but connected danger

Martin Lewis and MoneySavingExpert frequently warn about scams that use trusted brands or even fake videos (deepfakes) to trick people into giving away card details. Fraudsters sometimes target debit cards because stolen debit funds are taken directly from your bank account — which can be devastating if not spotted quickly. The Guardian and other outlets have reported scams using deepfakes to impersonate public figures to lend credibility to scams. That’s another reason to keep robust protections in place and to prefer card methods that give you time to challenge a payment. (The Guardian)

Practical, step-by-step plan — what you should do today

1) Check your overdraft and borrowing costs (10–20 minutes)

Log into your banking app or view your statements. Note arranged/unarranged overdraft limits and the APR / daily fees.
If your overdraft APR is high (e.g., 30–40%), consider switching accounts or moving high balances to a 0% purchase/transfer credit card if you can qualify (only if you can reliably repay during the promotional period). Martin mentions “money transfer” cards as an option for large overdrafts. (NationalWorld)

2) For purchases between £100–£30,000, consider paying (at least partly) by credit card (Section 75) — especially for travel, holidays, furniture or large appliances (5 minutes at checkout)

If a seller goes bust or goods are misdescribed, you have stronger legal recourse if you used a credit card. Keep receipts and emails. (MoneySavingExpert.com)

3) Keep your card contact details up-to-date (5 minutes)

Banks now use fraud checks (texts, calls) to authenticate online payments (Strong Customer Authentication). If your phone number/email isn’t current, legitimate payments may be blocked — and you could miss fraud alerts. MoneySavingExpert flagged this change previously; don’t ignore calls/verification messages from your bank. (MoneySavingExpert.com)

4) Act fast if you see strange transactions (immediately)

Ring your bank’s emergency number (or dial your bank’s lost/stolen line). Note every transaction and timestamp. Under UK rules you should be refunded for fraud if you did not authorise or were the victim of scams — but speed helps. Also, report scams to Action Fraud (in the UK). (MoneySavingExpert.com)

5) Use contactless/Apple Pay where possible for small purchases (convenience + tokenisation)

Contactless payments via phone/wallet are tokenised and can be slightly safer than raw card-number entry at terminals. Still follow basic precautions (don’t use suspicious machines, cover PIN entry). MoneySavingExpert has guides on contactless limits and fraud checks. (MoneySavingExpert.com)

6) If disputing a merchant, try chargeback (debit) then escalate to Financial Ombudsman if unresolved

For debit card problems, first ask the merchant for a refund. If they refuse, request a chargeback via your bank and keep evidence. If unresolved, the Financial Ombudsman Service can consider your complaint. Credit card Section 75 claims are statutory and often stronger, but always document everything. (MaPS)

Common scenarios — what to choose and why

Buying a £200 holiday: Use a credit card (Section 75) — stronger protection if the tour operator collapses. (MoneySavingExpert.com)
Coffee or small grocery shop: Debit or contactless OK — small value, low risk. Tokenised mobile payments are handy. (MoneySavingExpert.com)
You’re repeatedly overdrawn: Treat that overdraft as “danger debt.” Either cut spending, switch accounts with better arranged overdrafts, or move big balances to a cheap/0% credit product you can reasonably repay. Martin highlights arranging payments strategically around payday to minimise interest. (NationalWorld)

What banks and regulators say (context)

Consumer bodies (MoneyHelper, Which?, MoneySavingExpert) consistently point to Section 75 as a valuable protection for credit card users and note chargeback as a helpful but voluntary debit-bank scheme. They encourage checking terms, acting quickly on fraud, and using consumer complaint routes if banks won’t help. (MaPS)

Final verdict — Martin Lewis’s real message (and the common-sense follow-up)

Martin Lewis isn’t saying “never use a debit card.” He’s saying don’t be complacent: understand the product you’re using. Debit cards feel safe because they use your money — but if they push you into overdraft, the costs and protections can be worse than a well-managed credit card. He’s urging people to know the law (Section 75), check costs, update contact details, and act fast on fraud. That’s practical consumer protection, not a clickbait scold. (NationalWorld)