A significant adjustment to payment methods at checkout counters during shopping is taking effect today. The previous contactless card payment limit of £100 has been removed as of March 19, allowing banks to establish their own limits. Formerly, exceeding the £100 limit would prompt the need to input a four-digit PIN for authorization.
The new regulations, effective March 19, eliminate the £100 limit, granting banks the flexibility to set their own restrictions. Moreover, consumers now have the option to define their personal contactless payment limits if desired.
Many card issuers already permit customers to modify their contactless limits or deactivate the feature entirely. The evolution of the contactless limit over the years has seen it rise from £10 in 2007 to £100 in 2021, with incremental increases in between.
The decision to abolish the contactless limit was announced by the Financial Conduct Authority (FCA) following a consultation process. The FCA highlighted that a large portion of UK residents engage in monthly contactless transactions, with advancements in fraud prevention systems.
In response to the change, various banking institutions have affirmed their commitment to maintaining flexibility and security in contactless payment options. While immediate adjustments to the £100 limit are not anticipated, any future alterations will prioritize robust security measures.
Notably, several banks already empower their customers to customize contactless limits through mobile apps, ensuring a seamless and secure payment experience. As the landscape of contactless payments evolves, financial institutions aim to balance convenience with stringent security protocols.
