A significant change in how you make payments at the checkout while shopping is taking effect today.
The contactless card payment limit has been removed starting from March 19, allowing banks to establish their own limits. Previously, the contactless limit was set at £100 for both debit and credit cards, requiring a PIN entry for transactions exceeding this amount.
With the updated regulations effective today, banks now have the freedom to set their own contactless payment limits. Additionally, individuals can customize their own contactless limits if desired.
Previously, the contactless limit started at £10 in 2007, gradually increasing to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021. The decision to eliminate the contactless limit was announced by the Financial Conduct Authority (FCA) following a consultation process.
The FCA reported that around 85% of UK residents use contactless payments monthly, highlighting the improved fraud prevention measures in place. David Geale, from the FCA, emphasized the importance of providing flexibility for both consumers and financial institutions in payment methods.
Various banks, including NatWest, Nationwide, TSB, Barclays, Santander, Lloyds, Halifax, Bank of Scotland, Monzo, and Revolut, have outlined their approaches to the new contactless payment rules. Many of these banks already allow customers to adjust their contactless limits or turn off the function entirely through their banking apps.
While some banks have no immediate plans to modify the £100 contactless limit, they remain open to reviewing and adjusting their limits in the future to ensure security and fraud prevention measures are intact. Customers are encouraged to check with their respective banks for any changes to their contactless payment limits.
