As of 1 January, a new procedure has come into effect for using credit cards online.

Since the start of this year a new EU rule has come into force that requires more thorough identification from online shoppers. This means that more information is required from the credit card holder, including a second confirmation of a purchase.

Most banks in Luxembourg are already operating with this second authorisation step. They already require a second authorisation through the Token or via a mobile app. Others still need to implement this.

From 15 March onwards the new EU rule will be applied for all online purchases. Online shoppers will be asked to enter a password or a transaction number to ensure they are the legal owner of the credit card that is being used for the purchase.

This was introduced as fraudsters regularly manage to acquire the three-digit security code on the back of credit cards.

Some businesses in Luxembourg have already adapted to the change but others are still lagging behind, according to Luxembourg Confederation of Commerce.

The changes will be gradually phased in. From 15 January, online purchases of more than €250 will require a second authorisation. From 15 February this will be lowered to €150.

The EU Commission says it intends to make purchases more secure for consumers.