Starting from 14 March, online shoppers will face stricter customer authentication procedures as retailers will be required to implement new anti-fraud checks. These measures, introduced by the Financial Conduct Authority (FCA), aim to enhance security and reduce the risk of fraud in online transactions.
Similar to the authentication process used in online banking, buyers may need to provide a password, a pin, or a one-time passcode received via text message or landline before their electronic payment is accepted. They may also be required to log into their banking app to approve the purchase. However, these rules do not apply to phone purchases.
Originally planned to be implemented a year ago, the delay in enforcing these rules was intended to give retailers more time to adapt to the changes. Debit and credit card purchases will be affected, with high-risk transactions being impacted the most. This includes expensive purchases, transactions that are unusual for a particular shopper, or those made on a device that hasn’t been used before.
Mastercard estimates that around 25% of online transactions will require additional customer verification after 14 March, compared to just 1% previously. While most low-value purchases under £25 will be unaffected and checked in the background, customers making more expensive online purchases should be prepared for the possibility of encountering more authentication requests.
It is important for online shoppers to be aware of these upcoming changes and to understand the authentication procedures they may encounter when making online purchases. By familiarizing themselves with these measures, customers can navigate the process smoothly and avoid any unnecessary disruptions to their shopping experience.
Overall, the implementation of stricter customer authentication procedures for online shoppers starting from 14 March intends to enhance security, reduce the risk of fraud, and ensure that customers are indeed who they claim to be. Despite potentially experiencing more authentication requests, the long-term benefits of increased security outweigh any inconvenience these changes may cause.
For more information on these new anti-fraud checks and customer authentication procedures, you can visit the FCA’s official website and the Mastercard website.
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