Natwest, HSBC, Barclay’s, Santander or Lloyds warn all customers spending over £ 25
Most people in the UK have some sort of bank account – the days of putting wads of cash under your floor or in your mattress to keep them safe are probably waning.
This means that millions of Britons will be affected by new payment rules which could start as early as this month.
Account holders will need to undergo additional security checks if they spend more than £ 25 on their card to help banks spot ‘abnormal transactions’.
The new rules will come into effect for many customers, including those of banks such as Natwest, HSBC, Barclay’s, Santander and Lloyds.
While the additional controls, called Strong Customer Authentication (SCA) processes, will become an official measure in September, many financial groups are rolling out the system earlier this month, to ensure it is up and running.
The Financial Conduct Authority (FCA) is already contacting lenders to check if they have provisions in place for the rule change.
The news 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. pounds of losses.
What are the new checks?
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 with your card number) or modifying 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.
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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.
HSBC, for example, told the Mirror 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.
How will my bank or my 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.
Never give away your pin!
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.