Shoppers in the UK face more identity tests when shopping online

Online shoppers in the UK will face more identification checks when paying for purchases on the internet from Monday, as new rules have come into effect to stop fraud.

The new Strong Customer Verification (SCA) requirements allow people to change their way of verifying their identity when using their debit or credit card to make online purchases, and are expected to refuse more card payments. This is the biggest change in card payments since the introduction of the chip and PIN 16 years ago, and is designed to reduce the loss of £ 376m due to online fraud in 2020.

The system is like facing people who are already logged in to online banking. Customers will be asked to prove their identity when purchasing by confirming two of the three “factors”: they provide something, for example a fingerprint or facial ID; Something they know, such as a passcode or password; Or they have something, like their mobile phone.

Two-factor authentication checks mean that customers may be asked to verify a purchase via a one-time passcode sent via text message, which they must enter on screen. Other confirmations include answering an automated phone call on a landline or mobile or signing in to a banking app.

Exemption from certain transaction requirements, mainly purchases that are considered “low risk” of fraudulent activity, such as when buying low priced items, or repeated purchases such as subscriptions. High-value purchases, or transactions outside of the buyer’s usual spending habits or on previously unused devices, may require additional security checks.

MasterCard expects that about 25% of online transactions will require some sort of additional verification by the customer from Monday, compared to just 1% of previous online purchases.

Some card issuers began rejecting some non-compliant transactions from mid-January as part of a “ramp-up” to full implementation of the SCA.

The Barclays Card study found that in February, more than 2 1.2 million worth of online transactions, valued at more than 100 million, declined, resulting in retailers losing sales. About 14% of buyers reject an increase in their online payments and 37% go to another retailer to complete their purchase.

A spokesman for the banking and finance industry body, UK Finance, said the SCA was “an important tool in the fight against fraud, adding an extra layer of security when people pay online using a card”.

He added: “Customers should make sure that their bank has the correct contact details. If a customer has a specific need, they should contact the bank to discuss what help is available.”

The British Retail Consortium says retailers have been preparing their systems for months to enable them to process additional security checks.

Tom Ironside, BRC’s director of business and control, said: “The BRC and our members have worked with suppliers to ensure that multiple scams are checked behind the scenes and that any excess friction is kept to a minimum. Customers should be reassured that online shopping has never been safer. “

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