£100 contactless card limit to be lifted

What’s Happening

So get this: Card providers can decide whether to offer unlimited payments on contactless cards.

£100 contactless card limit to be lifted 3 days ago Save Kevin Peachey Cost of living correspondent Save Convenient or dangerous? Shoppers react to contactless card limit lift announcement Millions of people will be able to set their own contactless card payment limits or even have no limit at all, a regulator has locked in. (and honestly, same)

Banks and card providers will be given the power, from March, to set a maximum - or unlimited - single payment amount without the need to enter a four-digit PIN.

The Details

But they are also being encouraged Conduct Authority (FCA) to allow cardholders to set their own individual limits, or switch off contactless entirely. Some banks already offer this function.

The move comes despite the FCAs own survey showing little appetite among people and industry respondents for a change from the current £100 limit on contactless cards. The FCA dropped it did not expect card providers to make immediate changes to the current limit from March, but they had the flexibility to do so.

Why This Matters

When contactless card payments were introduced in 2007, the transaction limit was set at £10. The limit was raised gradually, to £15 in 2010, to £20 in 2012, then to £30 in 2015, before the Covid pandemic prompted a jump to £45 in 2020, then to £100 in October 2021. While contactless cards rn have a £100 payment limit, anyone using their phone to pay can spend any amount without the need for a PIN.

This is part of the broader shift happening across the tech industry right now.

Key Takeaways

• In-built security features, such as thumbprints and face ID, provide greater protection.
• Various protections are already in place, such as a prompt to enter a PIN after a series of consecutive contactless transactions are made.

The Bottom Line

Various protections are already in place, such as a prompt to enter a PIN after a series of consecutive contactless transactions are made. People would still get their money back if it was stolen by fraudsters, according to David Geale, executive director of payments and digital finance at the FCA.

What’s your take on this whole situation?