From March 19, a significant change in how you make payments at the checkout is taking effect. The previous £100 contactless card payment limit has been removed, allowing banks to establish their own limits. This change applies to both debit and credit cards.
Under the previous regulations, exceeding the £100 limit required entering a four-digit PIN for authorization. If multiple contactless payments under £100 were made in a day totaling over £300, entering a PIN was also necessary.
Starting today, the £100 limit has been eliminated, granting banks more flexibility to set their own rules. Additionally, individuals can now set their personal contactless limits if desired.
Various card providers already offer the option for customers to adjust their contactless limits or deactivate the feature. The contactless limit has seen increments over the years, starting from £10 in 2007 to reaching £100 in 2021.
The decision to remove the contactless limit was made by the Financial Conduct Authority following a consultation process. The FCA estimates that a large percentage of UK residents utilize contactless card payments monthly, emphasizing the improvement in fraud prevention systems.
Financial experts and industry representatives have shown support for the change, highlighting the convenience it brings to consumers. Banks and payment providers are expected to maintain strong security and fraud controls even if they adjust contactless limits in the future.