What are the new restrictions on contactless card payments? And how safe is it?

British consumers will be able to make Contactless payment Up to £ 100 at shops, cafes and bars From Friday, October 15thThe move is aimed at simplifying transactions, but there are concerns in some quarters.

The decision to break the EU-wide limit and raise the cap from £ 45 to £ 100 Ministry of Finance And that Financial Conduct Authority In the wake of discussions with public consultation Bank And the retail sector.

The cap was finally raised from £ 30 to £ 45 in April 2020.

“Contactless payments are very popular with consumers and more and more transactions are being made using contactless technology,” said David Postings, CEO of the banking industry group. UK finance..

“Raising the cap to £ 100 will allow people to pay for more valuable transactions, such as weekly shopping and fueling cars,” he said, somewhat optimistic about the latter. Said to.

“The payments industry has been working hard to put in place the infrastructure to allow retailers to update their payment systems and start offering this new limit to their customers.”

Prime Minister Rishi SunakHoping to encourage in-store spending as Britain continues its tremendous economic recovery from the coronavirus pandemic, Equally enthusiastic..

“Raising the contactless payment limit makes it easier than ever to pay safely and securely in local stores, in your favorite pubs and restaurants,” he said.

“When people return to High Street, millions of payments will be easier, providing retailers and shoppers with a welcome boost.”

Shoppers need all banks to be ready to process payments up to £ 100 from Friday, but all businesses need to be ready to serve because the device needs to be reprogrammed individually. It warns that this is not the case. A few months before the new limits were recognized as standard.

Of course, you can pay any amount via Apple Pay and Google Pay, taking advantage of the slight inconvenience of tip and PIN. Neither has an upper limit.

With the first contactless credit debit card Introduced in the UK in September 2007, it was a quick hit with payments of £ 10 or less at that time.

In 2021, an estimated 135 million contactless cards were in circulation in the UK, with approximately 9.6 billion transactions made each year. A quarter of the payments made in 2020 were traded through technologyAfter being used for centuries, it continues to phase out physical currencies.

All other countries, including Canada, Australia and Singapore, have succeeded in raising contactless payment caps above the same amount, but some financial advisers have helped thieves to do so and account. I’m afraid to risk putting people in debt by overusing my balance and not being able to track it.

Recently, Laura Suter, head of personal finance for investment firm AJ Bell Summary of these objections “First, it’s a thief’s dream. If a card is lost or stolen, a single transaction can take far more money.

“Second, there is a risk that the borrower will be in more debt. The easier the card transaction, the less likely consumers are to think positively about the amount they are spending. That makes it easier to stack large invoices on your credit card. “

Although it is a card scam Of great concern to many, UK financial statistics show that: Only £ 7.6m stolen from contactless cards and phones In the first six months of 2021, that is, if £ 66.5 billion was spent through the same technology during that time, only £ 1 for every £ 100 could result from fraud, and fraudsters and others. Indicates that you are looking for a target in the location of.

Reinforcing that idea is data from the same group on bank transfer fraud, with £ 355.3 million stolen through such a scheme in the first six months of the year, and the total of non-contact fraud is dwarfed again. It turned out that it became.

Customers paying for coffee with contactless cards


Also, keep in mind that banks require contactless users to re-enter their PINs on a regular basis after making a certain number of purchases. This means that a thief in possession of a stolen card may only be able to use it once or twice without knowing the card. The number before it became inaccessible.

Andrew Cleggan, Monetary Policy Adviser, Prior to Friday’s Deployment UK Retail Consortium, Advised consumer “Be especially careful when making contactless payments … because different businesses may have different limits and different stages of deployment.”

He also said that customers who do not trust that they will not overuse or feel uncomfortable with the new thresholds will “contact the bank to set a lower limit for contactless payments on the card or contactless. It may be possible to completely disable contactless payments. “

Current, Lloyds, Halifax Bank of Scotland customers Choose your own debit card limits There are equivalent options in increments of £ 5 between £ 30 and £ 95 via these banks’ mobile apps credit card It will expire soon.

“We listened to customer feedback and introduced this option, which allows our customers to get the most out of their £ 100 limit,” said personal current account, payments, fraud, and more. Philip Robinson, head of financial crime, said. Lloyds.

Whole country When Santander that is We are allegedly considering offering a similar service However HSBC, Barclays When Monzo Currently, do not provide individual limits.

Many banks also allow customers to opt out of contactless payment technology altogether, and some banks offer contactless cards to account holders on request.

What are the new restrictions on contactless card payments? And how safe is it?

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