New online shopping regulations effective as of March 14th
The Financial Conduct Authority (FCA) has introduced new rules to online shopping requiring Brits to undergo extra security checks. Starting from March 14th, two-factor authentication verification becomes obligatory for online purchases. It applies to both debit and credit card purchases. Low-value retail purchases (under £25) will continue to go ahead as before, but multiple low-value payments could prompt a request for verification. Shoppers buying more expensive items online will have to input a password, pin, or one-time-passcode that they are sent via text or landline, They may also be asked to log into their banking app and approve the purchase. The new rules do not apply if you buy something over the phone.
These rules were designed to reduce the level of online fraud committed in the UK which reaches £376m each year.
Barclays revealed that 56 percent of UK consumers have already used Strong Customer Authentication verification when shopping online. While the majority of consumers agreed that it makes online shopping safer, 37 percent said they would be unlikely to shop with a merchant in the future if their payment gets rejected without explanation.
Meanwhile, 28 percent of those customers reported abandoning purchases because of the time taken to complete two-factor authentication.
“Shoppers should be prepared for some purchases to take a little longer than usual to go through, but the extra seconds at the checkout are a small price to pay for the added security that the new rules will provide,” Cameron said.
What do you think of the new regulations? Are you for or against? Have you faced them already while shopping online? Let us know.