You may have noticed recently that some of your contactless payments have been declined when attempting to make a purchase in a shop. This is because new regulations came into place on 14 September that force you to enter your PIN every so often.
The new regulations which are known as ‘Strong Customer Authentication’ have two basic rules. Rule one is when five consecutive transactions have occurred. Rule two is when the cumulative spend of approximately £130 has been reached. Hitting one of these rules will result in the card payment getting declined. You would then need to insert your card and enter your PIN. At this point, the rules will be reset and you will be able to start using contactless payments again until the next time you reach one of them.
It should be noted that the UK government did grant an extension to the regulations coming into force for retailers that weren’t prepared however many retailers have already started to adopt the new rules and have trained their staff on how to handle a customer’s transaction if it gets declined.
There are some exemptions to the rules. If you are using Apple Pay or Google Pay you should not be required to insert your card and enter your PIN. This is because both Apple and Google use the existing biometric security build into your phone i.e your fingerprint. The benefit of not having to go through the rigmarole of a declined transaction followed by entering the card and PIN could see the further mass adoption of the Apple and Google Pay services.
The change is expected to cause much confusion for both consumers and retailers that have failed to train their staff.