Measures designed to protect online shoppers from fraud have been delayed for 18 months to avoid potential disruption to consumers.
The City watchdog, the Financial Conduct Authority (FCA), yesterday announced the delay to the system, which would have required shoppers to respond to a text or email to confirm online purchases of more than £28, in order to avoid “material disruption”.
The Telegraph had warned that the introduction of the protections, due to come into force on September 14 in line with EU regulations, could cause chaos for online shoppers and also leave some customers cut off from online banking.
However, experts have now expressed disappointment that consumers will be at greater risk of card fraud for more than a year.
Announcing the delay, Jonathan Davidson, a director at the FCA, said: “The FCA has been working with the industry to put in place stronger means of ensuring that anyone seeking to make payments is not a fraudster.
“While these measures will reduce fraud, we want to make sure that they won’t cause material disruption to consumers themselves; so we have agreed a phased plan for their timely introduction.”