NatWest has introduced a feature allowing customers to set their own daily limits for digital bank transfers, a move aimed at minimizing the impact of authorised push payment (APP) scams.
Currently, NatWest, Royal Bank of Scotland, and Ulster Bank impose a default transfer limit of £20,000 per day, which will now be lowered to £5,000. Customers can log into their online accounts and adjust their daily transfer limits—either decreasing it below £5,000 or increasing it up to £20,000—using a card reader. NatWest reports that 95% of its customers have never transferred more than £5,000 to someone else.
The consumer advocacy group Which? has praised this initiative and has reached out to other lenders to see if they will adopt similar practices. Nationwide and Virgin Money are currently considering it, while some others are not.
Which? believes that personalized payment limits could be a significant step in combating APP scams, which surged during the Covid-19 pandemic, leading to losses nearing half a billion pounds in 2020. Although fraudsters may still pressure individuals to change their transfer limits, allowing customers to define their typical behaviors creates additional safeguards. This setup not only offers banks a chance to alert customers about potential fraud but also enables intervention if something appears suspicious. NatWest adds that this measure also protects customers by preventing fraudsters from increasing their daily limits if they have compromised an account, as they would require the card reader to do so.