A new set of retail payment checks is being introduced by the Financial Conduct Authority (FCA) to prevent fraud. The rules mean credit and debit card will have extra screening for online and in-store purchases as a measure to prevent identity fraud and clampdown on stolen cards.
Customers will now be sent a code by their bank — usually to their mobile phone — when they make a payment online and they will need to enter this at the checkout for the payment to be approved. If banks can't confirm that the transaction is genuine or the retailer isn't able to make the checks then the card payment may be declined.
Some banks have already warned their customers that card payments could be declined as some retailers may not be ready. Some online transactions could be exempt, such as low-value purchases and those deemed to be a minimal risk by banks. Retailers with low fraud levels may also be able to wave through larger payments without going through any further checks.
Full story at the UK Financial Conduct Authority.Back to news