Contactless Limit To Be Raised To £100 In October 2021
UK banks have revealed that the contactless limit on credit and debit cards will more than double on 15th October 2021.
The initial contactless limit of £10 (set in 2007) has been gradually raised over the years. Then, the current limit of £45 was introduced at the beginning of the COVID pandemic. Shoppers were strongly encouraged to avoid using cash while out shopping. This was in an effort to prevent COVID being spread via notes and coins.
A study by UK Finance found that 60% of transactions in December 2020 were done using contactless debit cards. A further 41% were done using credit cards. The onset of the pandemic, combined with the sheer ease and convenience of contactless payment has catapulted its popularity. Physical shops are just one of many areas where millions of payments have been accepted using contactless.
The new £100 limit will be rolled out on 15th October with some retailers accepting the new limit immediately. Other stores, though, may need more time to update their terminals before accepting the updated tap and go payment.
Chancellor Rishi Sunak surmised that when reopening the UK economy, the limit increase will make it easier for people to pay for their shopping, safely and securely. In turn, this provides a much needed and welcome boost for retailers and shoppers alike, protecting jobs and driving growth.
Businesses are hoping that with the new restriction, shoppers will be willing to spend more than before. It could be on their weekly shopping or filling up their cars with fuel. Either way, it bypasses the usual chip and pin.
So, it is becoming easier to pay safely and securely which is a positive move, surely?
Criticisms
Unfortunately, not everyone agrees it is a positive move. The theft of debit and credit cards is certainly going to become more attractive. The likelihood of wallet theft is likely to escalate, too, along with vehicles being ransacked for debit and credit cards.
There are also valid concerns about people finding it harder to control their spending, particularly if they are already in debt. The majority of us find it much easier to tap our card and go without a thought. Whereas, paying with cash somehow seems more ‘real’ and may even induce second thoughts about a purchase.
Not only may people struggle with this higher cap, but Google Pay and Apple Pay (amongst others) don’t have a limit. As a result you can currently make contactless payments over £45 when shopping. Although, it is worth mentioning that many businesses will impose the contactless limit at their own discretion when shopping in-store.
It’s worth checking your bank because some are offering options for you to have more control over your contactless limit. Some even have a non-contactless card if you prefer. However, this doesn’t apply to all banks. It’s definitely worth checking, though!
If you are struggling with debt, visit Money Helper (formerly The Money Advice Service) for help and advice.
