As of 2 July 2019, Luminor will begin to limit payments authorised by code cards and code generators. This comes as gradual step to encourage customers to switch to more secure authorisation methods as code cards will cease to be valid as of 10 September 2019.
The change comes due to the stricter European Union (EU) requirements for customer digital authentication aimed at protecting people from fraud. In order to make sure the transition to the new authentication methods goes as smoothly as possible, Luminor clients are invited to choose a free-of-charge mobile application Smart-ID timely.
Due to enforced EU regulation concerning secure online payments, Luminor is going to increase the security of client online authentication and online payments by discontinuing the following authentication methods - code cards in Latvia and Lithuania, GO3 code generators in Latvia. Experts consider code cards an outdated solution that is no longer able to provide the required level of security. These requirements apply to all Latvian banks. Luminor has begun gradual withdrawal of customers from the use of code cards.
The access to internet bank with code cards have been in use for practically as long as online banking has been provided by banks in Latvia. However, codes are not dynamic and are more easily exposed to fraud if not properly stored.
“Code cards have been there for a long time and have served us well, but the world is changing – it is becoming more digitally and technologically advanced, thus code cards are losing their role. We are stepping up the game by replacing the code cards with more modern solutions that fit the current security standards. Customers are invited to switch to alternative payment authentication methods - a mobile application Smart-ID or other tools of authentication. The biggest advantage of Smart-ID authentication method is its convenience,” states Kerli Gabriloviča, Head of Luminor Latvia.
The Smart-ID application is a free of charge application for smartphones and tablets (Android, iOS), enabling a secure and convenient access to internet bank, mobile bank and online payments. Customer should not visit customer service center to activate Smart-ID app, it could be done by customers themselves at any convenient time. With Smart-ID authentication is simple, reliable and fast. Customers who use this app no longer have to carry the code card in their wallets, since payments can be approved with smartphones.
If customer does not have a smart phone or decides not to use Smart-ID, the authentication is possible also with a code generator – an alternative of the code card for those who do not have a smartphone. The code calculators can be obtained at customer service centres.
For those clients, who are still using code carts, it’s important to consider that several important changes concerning transaction limits and daily limits will take effect on July 2nd. To ensure gradual transition to alternative authentication tools for our customers, the maximum daily limit for payments made with code cards and code generators will be reduced to 50 EUR as of 2 July 2019. Starting from 10 September 2019, current authentication method using will cease to be valid. Customers, who will not replace authentication methods in due time, will not be able to access their Internet bank and Mobile bank, sign payment orders and make online payments using their payment card at merchants, participating in international security program “Verified by Visa”.
During the transition period, Luminor clients will receive individual information as well as support for the most appropriate payment authentication alternatives.
More information with frequently asked questions is available here.