Lloyds, HSBC, Natwest, Barclays customers face major change from Thursday | UK | News
Shoppers in the UK may soon see changes to the way they pay at tills after the Financial Conduct Authority (FCA) approved plans to lift the national limit on contactless card payments from Thursday. Currently shoppers can spend up to £100 in a single contactless transaction, but the regulator says this limit will be removed and will instead allow banks and payment providers such as Lloyds, HSBC and Barclays to set their own limits.
The move means some customers will be able to tap and pay for much larger purchases, depending on the rules set by their bank or card provider. Under the new approach, companies will be able to set their own contactless limits based on factors such as fraud protection, spending patterns and security controls. David Geale, FCA Executive Director 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.”
Many retailers already accept contactless payments for everyday purchases, and the technology has soared in popularity since the limit was increased from £45 to £100 during the pandemic.
UKHospitality chief executive Kate Nicholls said: “Making life easier for consumers is a positive development for hospitality and high street businesses and I am pleased the FCA is bringing forward this change.
“Contactless has increasingly become the preferred payment method for many people, and removing the cap could mean faster and easier experiences for consumers.
“While many people still prefer to use cash or chip and PIN, this change provides much-needed flexibility for providers and consumers.”
Despite the nationwide lockdown being lifted, banks are expected to continue using fraud detection systems and occasional PIN checks to verify larger purchases.
Consumer groups say the change could make shopping faster and easier, but some have warned it could also increase the risk of fraud if cards are lost or stolen.
The FCA said firms must ensure customers are protected and payment systems include appropriate security measures before introducing higher limits.
The move is one of nearly 50 measures the regulator outlined in a letter to the Prime Minister in January to support economic growth and prioritize digital solutions.
