Lloyds credit card is unusable due to overzealous security algorithm

Maegi

https://forums.moneysavingexpert.com/discussion/comment/81972414#Comment_81972414

I'd rather just use a card issuer that has a decent anti-fraud algorithms.

My formally trusty Halifax Clarity was promptly closed when I had to make multiple calls to the LBG fraud team and waited on hold for 45 mins each time to speak with a human. The best comment from the fraud staff member was that they were protecting my money; I said it was 100% their funds they were protecting and i was spending via the card.

unknownuser2u

Completely agree with you, and you're not alone in this — it's a widespread frustration across most major card providers, not just Lloyds.

The bit that stands out is that you called them the day before to pre-warn them about a large purchase, and they still blocked it. That's a fundamental failure — if a proactive call from a customer isn't enough to flag a legitimate transaction, what exactly is the point of being able to call them?

Your point about immediate notification is spot on. Most banks will send a fraud alert text asking you to confirm a transaction — but that only seems to happen inconsistently, and clearly didn't here. There's no good reason in 2025 why a card block can't trigger an instant text or app notification, given they can send marketing emails within minutes.

On your broader point — you're right that the 'we're protecting you' line is partly self-serving. Banks are liable for unauthorised fraud losses in most cases, so their algorithms are as much about protecting their own balance sheet as yours.

Worth raising a formal complaint with Lloyds and mentioning the pre-warning call specifically — if it's logged, it strengthens your case. You could also escalate to the Financial Ombudsman if they don't respond satisfactorily.

born_again

When banks were made liable for customers being conned/stupid/greedy (delete as applicable) they were always going to make it harder for people to give away their money

When are customer going to be liable for being as per your (delete as applicable) etc?

This is the reason that banks have to have these systems & the fact that they are so zealous.

It's a 2 way problem🤷‍♀️

eskbanker

The bit that stands out is that you called them the day before to pre-warn them about a large purchase, and they still blocked it. That's a fundamental failure — if a proactive call from a customer isn't enough to flag a legitimate transaction, what exactly is the point of being able to call them?

Does any credit card provider actually state that they'll effectively disable their fraud checks for certain transactions on the advance verbal say-so of the customer?

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/81978084#Comment_81978084

Unfortunately bodies like the FOS and FCA are overzealously pro customer (see PPI and DCA for example - both applications of new laws retrospectively). When it gets to the point a bank makes a customer take a selfie showing a sign saying they accept they are not being conned (despite it being blatantly obvious it's a scam and they were greedy) and still has to deal with a complaint about financial losses, they will always defer to safety over ease of use.

flaneurs_lobster

Question that's specific to the OP's bank, I've just swapped to using the Lloyds Ultra as my daily spender.

The few spends I've had to confirm (all online, never for IRL use) have all used SMS for OTP, is this standard or is it possible to switch to an 'in-app' confirm?

Just a personal preference.

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/81978064#Comment_81978064

As I already posted, banks are liable for customers losing money whether genuine fraud, greed or stupidity, hence they put in processes to be secure and avoid losing money.

There is no use in ringing lenders - that is the whole point! Banks don't ignore fraud checks just because a customer called them and said to ignore them for something upcoming - the bank don't know if that is the real person or a fraudster who has their details. Thus they protect themselves by adding security checks.

Most banks are moving away from SMS as it's unreliable and insecure, security authorisation is done by apps

Also it's 2026

Finally raising a complaint because they were following the industry standards they are required to is a waste of time and money for the bank and the FOS, you will never succeed in a complaint that the bank didn't waive the security protocols they are legally required to follow.

molerat

Amazed today when I managed to spend £300 on my Lloyds CC with Google Wallet, never managed that high an amount before - always failed and had to go C&P with the actual card.