British online shoppers face more identity checks from now on, according to Ecommerce News.
By subjecting consumers to a two-factor authentications the government wants to reduce fraud. More card payments will probably be declined. It is the biggest change to card payments in 16 years.
According to the Guardian, in 2021, Britain lost 376 million pounds to fraud. Changing the way people confirm their identity when using their debit or credit card should increase the safety of online shopping. The checks are similar to online banking. People can be asked to prove their identity when making an online purchase. For instance by providing a fingerprint, a facial ID, or a password.
It’s also possible that consumers from now on have to answer an automatic phone call or have to sign into a banking app. Whether people will have more identity checks depends of the type of transaction. Low-risk purchases, such as low-cost items or subscriptions, are exempt from the requirements.
High-value products, purchases that are odd compared to a buyer’s normal spending habits or purchases that are transacted on a previously unused device are likely to get extra security checks. Before the new rules, according to Mastercard only 1% of the online purchases needed extra verification by the customer. The company expects that this percentage will increase to about 25%.
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