The big changes in online purchases from Monday March 14 as some payments may be refused
Online shoppers are being warned they could see card payments declined as new rules come into force next week.
New rules requiring those who shop online to take extra steps to prove they are not fraudulent will be in place from March 14. reports ChronicleLive.
And customers are warned that they could have their payments declined if they don’t follow the necessary steps.
Read more:Martin Lewis warns of three things everyone needs to do before April 1
Here’s what you need to know about the new rules for online payments from Monday:
What is changing?
The new rules mean retailers must verify that you are making payment before charging your card.
Customers will receive a code from their bank – usually on their mobile phone – when they buy something online, and they must enter it at checkout for payment to be approved.
A one-time password will usually be sent via text message, but most banks offer the option of sending an email or automated message to your landline if your internet signal is weak.
Alternatively, you may be prompted to approve payments by logging into your bank’s mobile app.
Why does this happen?
The new controls are aimed at tackling credit card fraud, where scammers go on a spending spree using stolen details.
Should I check every time I buy something?
The Mastercard card provider estimates that one in four payments will require additional verification.
Is anything exempt from verification?
Some online transactions are exempt, such as low value purchases and those considered minimal risk by banks.
Retailers with low levels of fraud will also be able to make larger payments without going through further checks.
What about monthly payments or subscriptions like Netflix?
If you make regular payments for subscriptions on your card, you won’t be asked to enter a code each time money comes out of your account.
My signal is not good. What if I don’t receive the message?
Make sure your bank has all your contact details so that there are other ways to reach you, such as mobile and landline numbers and an email address.
It is currently unclear whether card companies will need to try more than one verification path, and which, if any, they should do first.
I’m already verifying some payments. What is changing?
Some banks and retailers already use the additional security check for customers spending a large amount of money or when using a website for the first time.
The new rules were supposed to be in place by September 14, 2019, but the deadline was extended by 18 months and then pushed back again due to the pandemic.
The new Strong Customer Authentication (SCA) verification process is an extension of the rules that have applied to online and mobile banking since March 14, 2020, so you may have already noticed some actions requiring confirmation identity, including logging in and transferring money to someone. other.
And SCA checks also already apply if you make several contactless payments in a row totaling more than £300 when you’re asked to verify your identity by entering your PIN.
Will this apply to all payments?
Each provider will have their own definition of “high risk” and “low risk” transactions, but, according to Moneysavingexpert.com, the following are generally more likely to be checked:
- Online payments over £25;
- Online payments up to £25 when you have made multiple consecutive payments totaling more than £85;
- New or Changed Recurring Payments.
How do I know text is not a scam?
Your bank or card company will never ask you for your PIN, password, date of birth, address or other personal information to verify a payment under this system, so if you are asked for other anything but a verification code, it’s probably a scam.
It’s also important to stay alert and be aware that some scammers may be using these new rules as an opportunity to try and get their hands on your personal and financial information.
Are all retailers ready for Monday?
Many large stores like Amazon and Asda say they have been prepared for the new rules for some time.
But smaller stores can struggle to meet the deadline – and risk significant losses if payments are declined.
Mike Cherry, President of the Federation of Small Businesses, said: “With the current turbulent economic conditions, small retailers already have a lot on their plate and may not have the bandwidth to handle this on their own, especially if a small online retail operation is a bolt-on primarily brick-and-mortar business.”
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