A significant change in payment methods at checkout counters is taking effect today. The previous £100 contactless card payment limit has been removed, allowing banks to set their own limits. Previously, exceeding the £100 limit required entering a four-digit PIN for authorization. Now, banks have the flexibility to establish their own rules for contactless payments. Customers can also set their personal contactless limits if desired.
The increase in the contactless limit has evolved over the years, starting at £10 in 2007 and gradually rising to £100 in 2021. The decision to eliminate the limit was made by the Financial Conduct Authority (FCA) following a consultation, aiming to provide more flexibility and choice for both consumers and financial institutions.
Various banks, such as NatWest and Santander, already offer options for customers to adjust their contactless limits or disable the function entirely. While some banks have no immediate plans to change the £100 limit, others like Lloyds and Barclays allow customers to set their own limits within their banking apps.
The FCA’s move towards greater flexibility in contactless limits has been well-received by industry representatives. UKHospitality’s chairwoman, Kate Nicholls, emphasized the convenience for consumers, while UK Finance’s Jana Mackintosh highlighted the security and popularity of contactless payments. The ongoing trend towards contactless transactions aligns with the evolving preferences of consumers.
In conclusion, while some banks are maintaining the £100 contactless limit for now, the option to adjust limits for greater personalization and security is becoming more prevalent across the banking sector. As consumer behaviors continue to shift towards digital payments, the flexibility in setting contactless limits offers added convenience and security to users.