New online shopping rules could mean that people buying items on the internet may see their credit and/or debit cards declined. From Monday, March 14 retailers must check who is making the purchase before allowing the payment to go through.
Under the new rules, consumers will receive a code from their bank when trying to buy a product online and then enter the security number during the checkout. In most instances, the code will be sent to people’s mobile phones but the bank may decline the payment if it’s unable to verify the transaction is genuine or the retailer is not set up to make the check, reports ChronicleLive.
The new layer of security will be known as ‘Strong Customer Authentication (SCA) and is being introduced under new Financial Conduct Authority (FCA) fraud-prevention rules. Some banks have already warned customers that some online retailers may not be ready causing cards to be declined.
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(Image: Andrew Matthews/PA Wire)
Late in January, First Direct told current account holders: “As we get closer to the regulatory date, the number of times you’ll notice you’re asked to verify it’s you making the payment will increase. If the retailer isn’t ready for the new process, there could be times when your card might be declined.”
Why are the rules changing?
The new checks are aimed at clamping down on bank card fraud, where…
