Natwest, Barclays, HSBC, Santander and Lloyds customers warned of payment rule changes
Anyone with a UK bank account or building society is being notified of changes to payment rules as part of new bank fraud measures.
Stricter security controls, part of the “Strong Customer Authentication (SCA)” rollout, will come into effect from September this year and will require debit and credit card providers to verify payments online.
The measurements will include a £ 25 trigger to detect ‘abnormal transactions’.
Banks such as Santander have introduced it gradually since last year and the SCA process will become an official measure from September 2021.
However, the Financial Conduct Authority (FCA) has stepped up preparations since June 1, which means some clients will already have to follow the new measures early last week.
HSBC told the Mirror that customers will be asked to confirm their card payments online more often, starting June 1, 2021.
The latest security checks follow new security checks for beneficiaries last year, when the “beneficiary confirmation” went into effect.
This means that lenders and loan providers will begin to contact customers more frequently to verify that the payment is legitimate.
The rules are due to go into effect in September 2021, but as of that month, the FCA is already reaching out to lenders to check if they have provisions in place for the rule change.
Payments regulator UK Finance told the Mirror it had ramped up this rollout since June 1, 2020 – meaning many people may have already received notifications.
This means that some lenders might submit them sooner – so it’s worth checking your contact details to make sure home addresses, emails, and phone numbers are all correct.
It comes after figures from UK Finance show more than £ 1.2bn was lost to fraud in 2019, with payment card scams and push payments fraud accounting for £ 824.8m sterling losses.
What are the new anti-fraud controls?
From March 14, 2022, verification will be required for the majority of online payments over £ 25, unless they are considered ‘low risk’, such as your usual supermarket in the same store or frequent payment. utilities.
Online payments under £ 25 will need to be verified if you have made multiple consecutive payments with a total amount over £ 85. This is to ensure that it is you – and not someone who has accessed your account.
Account holders will also need to verify themselves when setting up new recurring payments (made using your card number) or changing existing ones.
Your usual online transactions under £ 25 won’t require security checks, and debits like your phone bill, which is a recurring form of payment, won’t need to be checked every month.
Customers may also need to check in stores.
For example, you may be asked to verify the transaction or enter your PIN if you have made multiple contactless payments in a row totaling over £ 130.
Keep in mind that banks can report anything they consider “unusual” at any time, so make sure your information is up to date in case they need to contact you.
How will my bank, mortgage company or card issuer contact me?
Security checks can mean texting your bank with a verification code. Some banks such as Santander already do this through their online banking application or by SMS. In this scenario, you will be asked to enter the verification code sent to your phone online on the payment screen.
HSBC, for example, will start asking customers to verify their payments through the HSBC UK Mobile Banking app or via a code sent to a customer’s mobile phone (SMS) from this month.
Others may ask you to log into their app or online banking website to verify that it is you.
If you received a card reader when registering for online banking, you may be asked to use it to approve payment.
If you don’t have a smartphone, your lender can make an automated call on your landline.
If your card provider can’t reach you to verify transactions, your payments may be blocked, so it’s important to make sure the providers have your up-to-date contact details.
Your bank will never ask you for your PIN or bank account number out of the blue – and certainly not by email or text message.
If you receive a verification check but are concerned that it is not genuine, contact your lender instead using the number on the back of the card.
Never click on any unsolicited links in texts and emails as some of them may direct you to a clone website.
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