Contactless card payments could become unlimited and £100 cap scrapped
Summary
Contactless card payments in the UK might soon have no set spending limit, allowing banks to decide their own limits. The Financial Conduct Authority (FCA) proposed this change, though most consumers prefer the current £100 limit. If approved, this change could occur early next year, with banks ensuring payments remain safe.Key Facts
- The UK may remove the £100 limit on contactless card payments.
- The Financial Conduct Authority (FCA) suggested the change.
- Banks could set their own limits for contactless payments.
- Contactless payments started in 2007 with a £10 limit and have gradually increased to £100 by 2021.
- 78% of consumers responding to a consultation prefer keeping the current limit.
- The proposal aims to align card payments with smartphone digital wallets, which have no limits.
- Concerns about fraud exist, but protections include PIN requirements after several transactions and refunds for fraud victims.
- Changes could happen early next year, with updated payment terminals being needed.
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