Nationwide Building Society says that the introduction of Strong Customer Authentication (SCA) rules in March is helping it stop 2000 cases of online card fraud a month.
In the biggest change to UK payments regulation since the roll out of Chip & Pin in 2006, all online transactions over £25 have been subject to two-factor authentication checks since 14th March, to help combat online fraud.
While SCA has been controversial, with retailers concerned about customers abandoning transactions, Nationwide says that its research suggests that the regulations are proving effective.
Despite the fact that some transactions now take a little longer, a poll of 2000 Brits for the building society reveals more than two thirds of people are happy for a slight delay if it is more secure. More than two thirds of Nationwide members complete the SCA check using their mobile banking app, while 21% authenticate using a one-time passcode sent via a text message.
Matt Cox, chief product owner, digital payments, Nationwide, says: "Many people prefer the convenience of online shopping and, while merchants strive to make the checkout experience as quick and easy as possible, we generally accept that a small delay is worth it when it comes to our security and personal details."
Early data shows that the rollout of SCA is already having a positive impact in reducing online card fraud, with the Society seeing around 2000 fewer cases a month. Meanwhile, 42% say that SCA makes them feel safer when shopping online, while more than a quarter say the extra security it provides meant they are more likely to shop online.
However, around a fifth of people have previously reported a problem with the new system, largely because not all merchants are yet compliant. Other issues include customers not having up-to-date contact details, meaning they couldn’t get the code, or not having their phone with them to get the code.
Research published by Barclaycard Payments last months revealed that UK retailers have so far lost out on £130m worth of sales as a result of not being fully compliant with the new rules.