John Griffith-Jones, Chairman of FCA and Payment Systems Regulator, has written to Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, about contactless card fraud.
In 2015 there was £2.5m of reported contactless fraud, out of £7.75bn of contactless transactions.
In his letter, Griffith-Jones highlights the key risk as merchants who process payments ‘offline’ (ie batch payments being processed over a period of days by retailers).
FCA is exploring various options with the likes of the BBA, including:
- removing any onus on customers to identify fraudulent transactions
- technical enhancements to reduce the likelihood of post-cancellation contactless fraud