Starting today, a significant alteration in payment methods at checkout counters for shoppers is being implemented. The previous £100 contactless card payment limit has been removed, allowing banks to establish their own limits as of March 19. Previously, exceeding the £100 limit necessitated entering a four-digit PIN to authorize the transaction.
Under the updated rules effective today, banks are granted the flexibility to set their own contactless payment limits, providing consumers the option to define their preferred personal contactless limits. Many card providers already offer customers the ability to adjust their contactless limits or deactivate the feature entirely.
Initially set at £10 in 2007, the contactless limit gradually increased to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and eventually reached £100 in 2021. The decision to eliminate the contactless limit was announced by the Financial Conduct Authority (FCA) following consultations.
The FCA revealed that approximately 85% of UK residents make contactless card payments monthly, emphasizing the enhancement of fraud prevention measures. Financial authorities aim to ensure flexibility and choice for both financial institutions and consumers regarding payment methods.
Various banks, such as NatWest, Santander, Lloyds, Halifax, Bank of Scotland, Barclays, Nationwide, TSB, Starling, Monzo, and Revolut, offer different options for adjusting contactless limits within their banking apps. While some banks have no immediate plans to modify the £100 limit, others allow customers to set lower limits or disable contactless payments entirely.
In conclusion, the phasing out of the £100 contactless card payment limit offers increased convenience and flexibility for consumers, aligning with the evolving preferences in payment methods.