Hunt to review payment rules in post-Brexit fraud push

Jeremy Hunt will this week promise to review payment authorization rules in what he will describe as a post-Brexit crackdown on fraud.

Sky News understands the chancellor will signal in Wednesday’s autumn declaration that the government will seek to repeal EU legislation and replace it with new rules monitored by the City’s watchdog.

Sources said it would include a review of contactless payments, which are currently capped at £100, although it was unclear whether a significant increase to that was under active consideration.

The £100 cap has been in place since October 2021, with the limit raised from £30 to £45 18 months earlier.

The Danish Financial Supervisory Authority will be asked to assess the effectiveness of the existing rules.

Payment fraud has become a major problem for the banking sector in recent years.

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The Treasury is expected to say existing authentication rules are outdated and need to be replaced with a framework that allows industry and regulators to take advantage of technological developments.

An insider said the chancellor would also legislate to unlock the full potential of Open Banking, to allow consumers to use their financial data to access better market rates in areas such as savings products.

“These measures will give the public more choice in how they make payments and repeal legacy and outdated EU laws,” the insider added.

The Ministry of Finance declined to comment on Sunday.

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