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Hunt for the revision of payment rules as part of the fight against post-Brexit fraud

Jeremy Hunt will this week pledge to review the rules governing payment authentication as part of what he will describe as a post-Brexit crackdown on fraud.

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

Sources said this would include a review of contactless payments, which are currently capped at £100, although it was unclear whether a substantial increase in this amount was actively being considered.

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

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

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

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The Treasury is expected to declare that existing authentication rules are outdated and must be replaced by a framework that allows industry and regulators to take advantage of technological developments.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 give consumers the ability to use their financial data to access better market rates in areas such as mortgage products. saving.

“These measures will give the public greater choice in how to make their payments and repeal legacy and outdated EU laws,” the source added.

The Treasury declined to comment on Sunday.

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