The big changes to online shopping from Monday March 14 as some payments could be declined

Online shoppers are being warned they could see card payments declined due to new anti-fraud measures.

New rules requiring those making online purchases to go through additional steps to prove they aren't being fraudulent will be in place from March 14, reports ChronicleLive.

And customers are being warned they might have payments declined if they fail to follow the necessary steps.

Read more: Martin Lewis warning about three things everyone must do before April 1

Here is what you need to know about the new rules for online payments coming in from Monday:

What is changing?

The new rules mean retailers must check it's you making the payment before they debit your card.

Customers will be sent a code by their bank — usually to their mobile phone — when they buy something online, and they must enter this at the checkout for the payment to be approved.

A one-time passcode will usually be sent via text message, but most banks offer the option of email or an automated message to your landline if your internet signal is poor.

Alternatively, you may be asked to approve payments by logging into your bank’s mobile app.

Why is this happening?

The new checks are aimed at clamping down on bank card fraud, where crooks go on a spending spree using stolen details.

Will I have to verify every time I buy something?

Card provider Mastercard estimates one in every four payments will require the extra check.

Is anything exempt from verification?

Some online transactions are exempt, such as low-value purchases and those deemed to be a minimal risk by banks.

Retailers with low fraud levels will also be able to wave through larger payments without going through any further checks.

What about monthly payments or subscriptions like Netflix?

If you make regular payments for subscriptions on your card, you will not be asked to enter a code each time the money leaves your account.

My signal is not great. What happens if I don't get the message?

Make sure your bank has all of your contact details so there are alternative ways of reaching you, such as mobile and landline numbers and an email address.

It's not clear currently whether card firms will have to try more than one avenue for verification, and which if any they must do first.

I'm already verifying some payments. What's changing?

Some banks and retailers are already using the extra security check for customers spending a large sum of money or when they use a website for the first time.

The new rules were supposed to be in place by September 14, 2019, but the deadline was extended by 18 months, and then pushed back again due to the pandemic.

The new strong customer authentication (SCA) verification process is an extension to the rules that have applied to online and mobile banking since March 14, 2020, so you may have already noticed certain actions requiring identity confirmation, including logging in and transferring money to somebody else.

And SCA checks also already apply if you make multiple contactless payments in a row totalling more than £300 when you are asked to verify your identity by entering your PIN.

Will this apply to all payments?

Each provider will have its own definition of 'high risk' and 'low risk' transactions, but, according to Moneysavingexpert.com, the following are typically more likely to be verified:

• Online payments over £25;
• Online payments up to £25 where you've made multiple payments in a row totalling more than £85;
• New or modified recurring payments.

How do I know the text is not a scam?

Your bank or card firm will never ask your PIN, password, date of birth, address or other personal details to verify a payment under this system, so if you're asked for anything other than a verification code it's likely a scam.

It's also important to remain vigilant and be aware that some scammers may use these new rules as an opportunity to try to get their hands on your personal and financial information.

Are all retailers ready for Monday?

Many larger stores such as Amazon and Asda say they have been prepared for the new rules for some time.

But smaller stores may struggle to meet the deadline - and risk significant losses if payments are declined.

Mike Cherry, chairman of the Federation of Small Businesses, said: "With current turbulent economic conditions, small retailers already have a lot on their plate and may not have the bandwidth to manage this alone, especially if a small online retail operation is a bolt-on to a mainly bricks-and-mortar business."

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