Contactless card limit is rising – how to keep your money safe if you lose card | Personal Finance | Finance
From October 15, shoppers will be able to make an in-store purchase of up to £100 without using their PIN. BBC Money Box listener Olivia called into the show on Saturday and said: “I think that the £100 contact limit is too high for someone like me.
“As soon as you find out money has taken, you should go straight to your bank.
“A lot of apps now as well, as soon as you find out this has happened, you can freeze your card straight away before you get on the phone to them, and it can stop any transactions taking place.”
Currently, regulations state that providers will prevent contactless payments where people try to spend above the contactless limit, where they’ve made more than five contactless transactions in a row using the same card, or where the total amount spent since people last had to verify a transaction exceeds £130 (this is changing to £300 from October 15).
Each bank has protocols in place to prevent fraud, but the Financial Conduct Authority has explained victims should be able to get their money back “without unnecessary delay”.
The contactless card limit increasing could be seen as a convenience to many people however others may fear the ease could cause them to overspend.
Mr Webb continued: “In lots of ways the convenience is great but on the flip side is the classic example where you’re in a busy bar and you order some drinks, and you go to pay and tap your card, but you can’t hear how much it is.
“There’s a danger of being overcharged, but then it’s also very hard to keep track of your spending so you could absolutely spend more thank you plan to and anticipate which can cause problems.”
The national roll-out of the new £100 spending limit for contactless card payments begins from October 15, with government, banks and retailers claiming it will help boost the economy.
Responding to concerns that raising the contactless limit could lead to increased levels of fraud, the Treasury said there was no significant rise in reported fraud when the limit was raised from £30 to £45 last year.
It added that reported fraud equated to 0.02 percent of the total spent using contactless cards since April 2020.
The proportion of debit card payments using contactless has risen during the pandemic, from two in five in 2019 to three in five by September 2020.
David Postings, Chief Executive of UK Finance, said: “Contactless payment has proved very popular with consumers and an increasing number of transactions are being made using contactless technology.
“The increase in the limit to £100 will allow people to pay for higher value transactions like their weekly shop or filling up their car with fuel.
“The payments industry has worked hard to put in place the infrastructure to enable retailers to update their payments systems so they can start to offer their customers this new higher limit.”
For those opposed to the idea of the limit increasing, each bank has different rules in terms of lowering the contact limit or not having it at all.
Britons should speak with their bank as all of them are different.