NEW rules being introduced to crack down on fraud could lead to your card being declined more frequently - even if there are funds in your account.

Contactless technology has changed the way we pay, with many transactions not requiring you to enter your PIN.

But in September the Financial Conduct Authority put forward new rules as part of a crackdown on fraud.

The legislation is being rolled out over the next two years and it means your card could be declined, despite there being enough funds in your account.

That's because banks have to follow tougher procedures to ensure the person paying is the account holder.

This means banks will refuse contactless payments more frequently to ask for your PIN - so make sure you know it.

For online payments, more sites will require text authorisation when you're paying.

The rules are already being phased in, with all banks having to be compliant by March 2021.

This includes ensuring there are back up plans for those without mobile phones and introducing new tools such as fingerprints to carry out the checks.

But in the meantime, customers will start to see the new checks kick in - especially over Christmas when spending will be heightened.

It means shoppers could run the risk of having their card snubbed when using your contactless chip five times in a row in quick succession. After this point, you will be asked to verify your transaction with a PIN.

Payments in an unusual location could also spark a security check - as it could suggest the card is being misused.

Christo Georgiev, CEO of UK payment solutions company myPOS, says customers need to be aware of the issues - so that they’re armed with their PIN even when paying for low-value items.

He said: "Tap and Pay is undoubtedly more convenient than any other payment method available today and customers love it.

"And the recently introduced limit of five consecutive taps without a PIN is actually good for your security.

"You shouldn’t panic when your card is declined once the limit has been reached, just continue using your card but make sure you can enter your PIN to complete the transaction."

With an estimated 112million contactless cards in the United Kingdom, contactless payment systems such as bank cards or mobile phones now account for one in three payments in the United Kingdom.