Contactless card payment limit could be increased to £100
Author: Triston Macauley | Wednesday 27th January 2021
The limit for contactless payments is set to increase to £100- more than double the current limit.
The financial Conduct Authority (FCA) said it will consult “shortly” on a change in rules.
The regulator has stated, “It is important that payments regulations keep 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.”
The news comes after figures released this week by Link, the cash network operator, showed that ATM transactions had fallen in 2020 at nearly four times the rate of recent years.
The current limit of £45 was raised from £30 only less than a year ago. The coronavirus pandemic has overseen larger amounts spent via contactless payments on debit cards, credit cards, and cards connected to smartphones.
Some retailers have encouraged shoppers to pay by card rather than cash during the pandemic, although a recent Bank of England study found the risk of catching coronavirus from banknotes was low.