Online shopping - cause for confusion!
Within weeks, new anti-fraud rules mean that all shoppers will need a security code to buy online!!
But guess what - Banks and Retailers aren’t ready.
This, from Amelia Murray in Money Mail.
QUOTE
Millions of online shoppers could face chaos after a security shake-up that may bar customers without mobile phones.
Critics say banks have not done enough to prepare shoppers for the major changes, which are due to take place within weeks.
The new system, aimed at preventing fraud, requires customers to use an access code - typically sent to a mobile phone - before making purchases online. They must enter this number at the check-out to confirm payment.
But Money Mail has discovered a string of issues that could leave shoppers locked out.
THOUSANDS of Santander customers without mobiles cannot complete purchases.
THE checks could also exclude those who do not get a mobile signal at home.
UP TO a third of purchases could fail.
SOME banks have still not yet warned their customers about the changes.
MAJOR banks are refusing to let customers ‘whitelist’ favourite retailers, which means they will always have to input the code.
Almost one in five payments to retailers are online, but under new EUROPEAN LEGISLATION, shoppers must soon verify internet purchases with a special code. This could be sent to your mobile phone or email address, generated on a card reader or via a banking app, or as an automated message to a landline.
The idea is to make it harder for fraudsters to go on a spree with credit or debit cards.
Many of us are already used to being sent passcodes by our bank when making an online payment as a way of proving we are are the person carrying out the transaction.
And you may already have been asked to type in a code when shopping online if you were spending a large sum of money or using a retailer you have not shopped with before.
However, just 1 pc of online payments currently require a code, typically sent by text, according to Mastercard.
When the new European regulations are introduced in September, this will increase to 25 pc.
Despite firms having two years to prepare for the so-called Secure Customers Authentication, experts are predicting total disorder. Customers with no mobile phone or poor signal may not receive the code.
Emails could also take a while to reach your inbox, by which point your transaction will have timed out, requiring you to start again.
Those opting to get the code from a card reader will also have to keep the device to hand. In the worst-case scenario, shoppers will not be able to buy from certain websites. In fact, the British Retail Consortium estimates 25 pc to 30 pc of online purchases may fail when the measures are rolled out.
Much of the problem is down to banks refusing to give customers a choice of how to receive the codes.
Santander, with 15million active customers, says it will only send the code by text to a mobile or via the smartphone app. Those without a mobile will no longer be able to use their card online. You may also struggle if you have poor signal. Santander has yet to tell customers.
HSBC customers will be sent a code via text to a mobile. if unable to receive it, they can get it sent by email - but only if HSBC has their address. Lloyds will text the code to a mobile or send a message to a landline. Royal Bank of Scotland customers can also opt for an email. Nationwide will offer mobile and email options, as well as notifications sent to banking apps and the use of a card reader.
Some providers, such as Metro Bank, Monzo and Starling Bank, have not started telling account holders about the changes.
Some transactions will be exempt. For example, you will be able to make up to five payments under £27 or once you have spent £137, before being asked to verify your identity.
UNQUOTE
Well, there you go! First time I’ve heard about it, and it starts in 8 weeks time in September. Another EU regulation that is going to cause utter chaos.
fingers crossed.
