Huge new ‘£100 change’ in March every time you use a bank card | UK | News
Britons will soon be able to make contactless payments of more than £100 as the limit is set to be lifted, according to the Financial Conduct Authority (FCA). From March, card providers and banks will be given the power to set a new maximum single payment limit, including an unlimited option. The regulator also recommends that cardholders be allowed to set their own maximum spending amounts or cover any limits entirely.
Contactless payments were introduced 18 years ago and the PIN-free payment limit was initially set at £10. This amount gradually increased to £30 in 2015, to £45 during the Covid pandemic and then to the current maximum of £100. The FCA said card providers will likely not make the change immediately, but will have the option to do so from March.
As contactless payments gradually increase, concerns about theft and fraud have also increased as larger payments can be made without entering a PIN.
David Geale, FCA’s chief executive of payments and digital finance, said: “Contactless is people’s preferred payment method. We want to make sure our rules provide flexibility and choice for both firms and consumers for the future.”
Mr Geale added that consumers could still get their money back if it was stolen by thieves.
The move would follow other countries such as Canada, Australia and New Zealand allowing providers to set their own limits for contactless payments.
Currently, anyone who uses their smartphone to pay can spend unlimited amounts without entering their PIN.
This was made possible thanks to additional built-in security features such as face ID, fingerprints and passwords required to use the phone.
Jana Mackintosh, UK Finance’s managing director of payments and innovation, told the BBC: “Any future changes will be made carefully, ensuring strong security and fraud controls remain in place.”
Despite the impending change, the FCA’s survey on the adjustment or removal of limits was not well received by consumers. Data disclosed during the interview shows that 78 percent of participants do not want any changes to the current limits on their contactless cards.
