Hold onto your cap
You don’t have to increase your contactless card payment limit, says Paul Lewis
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Next week the rule that limits contactless card payments to a maximum of £100 is being scrapped. From 19th March, banks will be free to remove the cap on contactless payments, bringing cards into line with card payments made through virtual ‘wallets’ on a mobile phone.
The change in the rules was made by the Financial Conduct Authority as part of its commitment to cut red tape and improve productivity. It decided to go ahead even though more than three out of four customers surveyed said they did not want an increase (as did eight out of ten banks).
So it is not surprising that some of the major banks have told Radio Times that they have no plans to scrap the limit or raise it. None have yet responded to say it will be scrapped or even raised.
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HSBC, Santander and Lloyds Banking Group (which includes Halifax and Bank of Scotland) have all told me they have no plans to change the limit on 19th March. The latter also stressed that customers can set their own limit, via their banking app, up to £100. In fact any bank should restrict your contactless limit (or disable contactless spending altogether) if you ask. If yours refuses, complain to the Financial Ombudsman
When it began in 2007, the contactless limit was just £10, but it has been steadily raised – and jumped from £45 to £100 in October 2021. Any change in the contactless limit has to be notified to customers though, so if your bank has not informed you about a change from 19th March, you can assume it is staying the same for now at least. Even if the limit does change, UK Finance – which represents the banks – has said that any money stolen using a contactless card will be fully and quickly reimbursed by your bank, just as it is now.
If, on the other hand, you find the limit restrictive then you could register your card with a digital wallet on your mobile phone. When you pay with the card that way, there’s no limit, though for large amounts you may still be asked for your card and PIN.