Starting today, a significant change in how payments are made at checkout counters during shopping is being implemented. The previously set £100 limit for contactless card payments has been removed as of March 19, allowing banks to establish their own limits. Under the previous regulations, exceeding the £100 limit required entering a four-digit PIN to authorize the transaction.
With the new rules effective from today, banks have the flexibility to determine their own contactless payment limits. Customers also have the option to set their personal contactless limits if desired. Many card providers already offer the capability for customers to adjust their contactless limits or deactivate the feature altogether.
The contactless payment limit has evolved over the years, starting at £10 in 2007 and gradually increasing to £100 in 2021. The decision to eliminate the limit was announced by the Financial Conduct Authority (FCA) following a consultation process. The FCA noted that the majority of UK residents engage in contactless card payments monthly, emphasizing the enhancement of fraud prevention measures.
Various industry figures have welcomed the change, citing the convenience it brings to consumers and businesses. Banks and payment providers are urged to maintain stringent security and fraud controls despite potential future limit adjustments. While some financial institutions are exploring new limit options, others like NatWest, Nationwide, and TSB have confirmed no immediate plans to modify the existing £100 limit for contactless transactions.
Customers of different banks such as Santander, Lloyds, Halifax, Bank of Scotland, Barclays, and Monzo already have the ability to customize their contactless limits through their banking apps. These institutions are committed to providing flexibility and security in payment options, with ongoing reviews of their policies and limits. Revolut customers, on the other hand, have the option to set monthly spending limits to manage their overall card expenditures.
As the financial landscape adapts to changing consumer preferences and technological advancements, the focus remains on ensuring secure and convenient payment methods for all users.