The regulator is considering a major change to make paying easier and safer, with card holders up and down the country warned.
Contactless card users have been warned the payment limit could change in a bid to “increase trust in UK systems”. The regulator is considering a major change to make paying easier and safer, with card holders up and down the country warned.
The current £100 cap on contactless payments could be removed after it was hiked from £45 back in 2021. Abolishing the threshold would mean that cardholders could make purchases through contactless payments regardless of the amount.
It could bypass the need to enter their PIN number. The Engagement Paper detailed: “Such fraud is a very small part of total unauthorised fraud and technologies within firms to identify and stop fraudulent payments are sophisticated and improving.
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“Methods and trends in payments fraud are constantly evolving, as are fraud-detecting technologies…We want to understand whether the existing contactless payment limits are still relevant and achieving the best overall outcomes.”
The FCA hopes changes will help “build trust in the UK payments system”. Emma Reynolds, the Economic Secretary to the Treasury, said: “The FCA’s review of the contactless payment limits, including removing the £100 limit on individual payments, is a welcome step to ensure that families can safely benefit from more flexibility when making purchases.”
The regulator says any changes will ensure “how customers are protected. It said: “Existing legislation requiring firms to reimburse consumers in cases of unauthorised payment fraud, for example when their cards are lost or stolen, will remain in place.”
UK Finance says people should not worry. “You are fully protected against fraud, so you get all of your money back and will never be left out of pocket,” it says. “If you notice any suspicious activity on your account, contact your bank immediately.”
Back in 2021, the FCA said: “Contactless payments remain relatively safe compared to other payment methods.”