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Shoppers warned over new rules that could mean their cards bounce ‘for no reason’

Two in five card payments are now made using contactless technology, accounting for the 7.4billion payments made a year using tap and pay.

But Brits are being reminded to check their pin numbers, over a change in law that could see your card declined, despite having enough funds in your account.

Contactless technology has revolutionised the way everyday payments for things like groceries and hot drinks are made.

But the threat of fraud means banks and payment providers are introducing stricter terms that could lead to red faces at the tills when credit or debit cards are declined.

It’s all down to a little-known new piece of legislation that’s being rolled out over the next two years.

In September, the Financial Conduct Authority put forward new rules to as part of a crack down on fraud.

It said banks would have to follow tougher procedures to ensure the payee is the account holder, for instance, by asking for pin numbers more frequently and sending text authorisation messages onlne.

These rules are now being phased in – however, the FCA has issued an extended deadline of March 2021, for banks to make all the necessary provisions to ensure the security checks work.

This includes ensuring there are back up plans for those without mobile phones and introducing new tools such as fingerprints to carry out the checks.

But in the meantime, customers will start to see the new checks kick in – especially over Christmas when spending will be heightened.

It means shoppers could run the risk of having their card snubbed when using your contactless chip five times in a row in quick succession. After this point, you will be asked to verify your transaction with a PIN.

Payments in an unusual location could also spark a security check – as it could suggest the card is being misused.

Christo Georgiev, CEO of UK payment solutions company myPOS, says customers need to be aware of the issues – so that they’re armed with their PIN even when paying for low-value items.

He said: “Tap and Pay is undoubtedly more convenient than any other payment method available today and customers love it.

“And the recently introduced limit of five consecutive taps without a PIN is actually good for your security.

“You shouldn’t panic when your card is declined once the limit has been reached, just continue using your card but make sure you can enter your PIN to complete the transaction.”

With an estimated 112million contactless cards in the United Kingdom, contactless payment systems such as bank cards or mobile phones now account for one in three payments in the United Kingdom.

Meanwhile UK retailers are also gearing up for one of the busiest weeks of the year as we approach Black Friday

On November 29, businesses will be offering huge discounts across an entire range of consumer products, from fashion to household appliances and even holidays.

In 2018, UK consumers spent £1.23bn over the Black Friday weekend, beating the money spent during the Christmas sales.

And the spending spree is likely to continue into Cyber Monday, which falls on December 2 and will see further retail discounts.

PSD2 was brought in to regulate payment services across European Union countries and has been in full effect since the 14th of September.

A myPOS spokesperson adds: “So, next time you are getting your favourite coffee don’t get startled if you are asked to put in your card PIN – it’s all to your benefit and part of the game.”

Featured on: MIRROR

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