Contactless card limit could rise to £100 as pandemic continues
The limit on a single payment using contactless card technology could rise to £100 – more than double the current limit – after a consultation on the future of retail during the COVID-19 pandemic.
The Financial Conduct Authority (FCA) will make an announcement on the potential changes in the rules next week.
The crisis has led to larger amounts spent via contactless payments on various cards, and smartphones in order to reduce the risks associated with traditional money transfers.
The current limit is £45 – rising from its original limit of £30. The original increase was authorised in April last year.
An FCA statement read: “It is important that payments regulation keeps pace with consumer and merchant expectations. Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100.”
No matter what the FCA decides regarding card spend boundaries, the card issuers would still have the ability to set limits on customer’s accounts.
A UK Finance statement read: “The industry believes that a more flexible approach could be merited in future, which takes into account consumer demand, fraud prevention, security and convenience. Contactless is one of a range of payment methods and the industry will also continue to work closely with the regulator to ensure that customers can pay in a way that suits them.”