Contactless card payments could become unlimited under new plans

Contactless card payments will exceed £ 100 under new offers to allow banks and other providers to set boundaries and will potentially become unlimited.

Bids from the Financial Behavior Authority (FCA) mean entering a four -digit PIN to make card payments.

If approved, purchases that may cost more than £ 100, such as a large supermarket shop or a large family dinner in a restaurant, can touch with a card.

The movement will bring cards in line with payments made from digital wallets on smartphones without any restrictions, and reflect people’s ongoing changes in the form of payment.

When contactless card payments were brought in 2007, the transaction limit was determined as £ 10. Covid pandemi was upgraded to £ 45 in 2020 and then to £ 15 in 2010 in 2010 and 20 in 2015 to £ 20 in 2015.

If approved, the last plan can be applied at the beginning of next year.

Each increase was met with concerns about theft and fraud, and FCA said that card providers would allow higher valuable non -contact payments only for low -risk transactions, and that if things go wrong, they would carry the burden.

However, the freedom of banks to raise the contactless boundary or even scrapped, suggests that the four -digit pin may soon become relatively unnecessary.

Despite the majority of consumers and industry participants, FCA proposed changes despite a consultancy that supports existing rules.

78% of the responding consumers said they did not want any changes at the borders.

FCA said that he did not expect a quick change, but he would welcome flexibility during the increase in prices and technology progressing. They can also give customers the option to set their own limits.

The idea of ​​high -valuable payments made by touching a card will express the concern that thieves and scammers will target cards.

Various guards are already available. In addition to the 100 £ a single payment limit, a number of contactless transactions more than 300 £ or after five disintegration payments are usually required to enter a pin.

FCA’s own analysis shows that raising borders will increase the loss of fraud, but the determination will improve and continue to be better.

He said that any change would be dependent on the provider that makes payments low -risk through fraud prevention systems.

According to David Geale, consumers would take back their money if they stole money by fraudsters from FCA.

“People are still protected. Even if your card is used as fraudulent, companies will return your money,” he said.

Many banks allow card holders to set or close a contactless boundary, and FCA expects this option to be widely available.

He argued that time savings, less “payment friction” and a reflection of increasing prices over time will make changes to the limits valuable.

Payment terminals also need to be changed, because most cards are programmed to automatically reject payments more than £ 100 £.

Smartphones already have an extra safety layer through thumb scars or facial identity. This allows people to make unlimited payment.

According to industrial research, about three quarters of 16 to 24 years of age use mobile payments regularly.

Near the appropriate Bank Street called Bank Street in Sevenoaks, 24 -year -old Demi Grady said he was bothering to move his cards because he used his phone for everything.

“I was in London the other day, my phone was dead and I couldn’t pay for it because I couldn’t remember my card information.”

His mother Carrie, on the contrary, uses his card while shopping.

“If it was to lose the limit of £ 100, it would be more worried about being useful,” he said.

Robert Ryan, who bought a new “Winter-Jesh Jacket” in a Harveys men’s clothing in Bank Street, said he did not see a four-digit number while paying as difficulty. Instead, it can be a useful budgeting tool.

“I feel safer in what I buy, and it gives me some request to make sure that I don’t spend excessive tap and going to me,” he said.

The owner of the store, Richard Staplehurst, said the majority of its customers paid through a device.

He said that the removal of payment barriers was great, but he did not want to descend with a invoice if a card fraudulent way.

The idea of ​​lifting the contactless border was emphasized as a way that FCA responded to the Prime Minister’s call to the organizers. Remove restrictions to create more economic growth.

The government is trying to improve the economic performance of England, which has been slow for a while.

Other countries such as Canada, Australia and New Zealand allow the industry to set contactless card limits.

FCA will consult its offers until October 15th.