Diphenyliodonium ions (Ph2I+) form donor-acceptor ion pairs with suitable cyanometallates such as [Mo(CN)8]4-, [W(CN)8]4-, [Ru(CN)6]4- and [Os(CN)6]4-. Such ion pairs are characterized by new spectroscopic transitions due to second-sphere interactions between donor ([M(CN)x]4-, x=6, 8) and acceptor (Ph2I+) ions. Photochemical excitation of these ion-pair charge-transfer (IPCT) states leads to efficient electron transfer reactions that yield short-lived diphenyliodyl radicals (Ph2I*) and oxidized cyanometallates ([M(CN)x]3-). Diphenyliodyl radicals decay to iodobenzene and phenyl radicals. This very convenient source for generating phenyl radicals was applied to the photoinduced chain oxidation of primary and secondary alcohols to the corresponding aldehydes and ketones, respectively. However, unexpected side reactions led to undesired chain-terminating reactions. Adduct formation of diphenyliodonium ions with alpha-hydroxyalkyl radicals was verified by pulse radiolysis studies. These relatively longlived adducts give rise to chain-terminating reactions because of interactions with [M(CN)x]4- complexes that lead to oxidized cyanometallates [M(CN)x]3- upon regeneration of the starting alcohols.