New card authentication rules mean that your credit card could be declined! Here’s what you need to know

Woman looking sideways at credit card

Credit card fraud is a growing problem in the UK that cost credit cardholders £574.2 million in 2020. As a result, banks around the country have started to implement stronger security measures. These new card authentication rules aim to protect customers from losing their money. Will these new rules make it more difficult to make purchases online? Here’s everything that you need to know.


What are the new card authentication rules?

The new rules, known as strong customer authentication (SCA), have been introduced by the Financial Conduct Authority (FCA) to reduce online credit card fraud. The new rules will give UK retailers extra time to implement customer authentication before payments are made.

SCA measures mean that customers will have to prove authenticity before being able to use their card to make payments online. Most retailers will ask customers to provide a code that will be sent to their mobile phones using the contact details connected to their bank account.

To get through the authentication process, customers simply need to provide the correct code to prove they own the card they are trying to use. Some banks will also give users the option to receive a code via email or landline.

The problem with the new SCA rules

While the SCA measures have been introduced to reduce fraud, the new rules could make it difficult for certain users to shop online. Customers who do not have any mobile phone signal or those who don’t own a mobile phone at all could face problems when trying to use an online store.

As a result, the FCA is urging banks to come up with alternative authentication measures that do not require the use of a mobile phone. However, it could be some time before these are implemented on a wide scale. For now, those without access to a mobile phone may be forced to suspend their online shopping habits!

If you cannot pass the authentication measures, your credit card will be declined and you will not be able to make any purchases.


Which banks are offering mobile phone-free authentication?

If you’re worried about being unable to make online purchases with mobile authentication, you may want to consider moving to a credit card provider that offers an alternative option. Here are some of the banks that are offering mobile phone-free authentication.


Santander is allowing users to provide authentication via email or app. This means that users can use a PC to prove authentication when making a purchase online.

Virgin Money

Virgin Money card users will be able to receive an authentication code via their landline, which is an excellent option for people who don’t own a mobile phone. Card users will also be able to prove authentication via the Virgin Money app.


HSBC card users could choose to use a card reader to prove authenticity when shopping online. Card reader authentication requires you to have your card available at the time of purchase. Users will need to insert their card into the reader to receive a code.


Natwest, RBS and Ulster Bank will allow customers to use their landlines to receive a code, making these cards an excellent option for people who do not own a mobile phone.

The post New card authentication rules mean that your credit card could be declined! Here’s what you need to know appeared first on The Motley Fool UK.

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