Contactless card limit increases today
Written on 1 September 2015
The limit for contactless card payments is rising from £20 to £30 with effect from today.
Contactless cards which let you pay by tapping your debit, credit or pre-paid card against a card reader are increasingly popular. Spending on contactless cards and devices rose from £287 million a month in January 2015 to £567 million in June, according to figures from the UK Cards Association.
The new limit means you’ll be able to use your contactless card to pay for a wider range of goods and services than before. But surprisingly not all contactless terminals will be updated with the new limit straightway. It could take a number of weeks before they’re all able to accept £30 payments, says the UK Cards Association. In the meantime you can continue to use Chip and Pin to pay for anything over £20 as before.
The rise in popularity of contactless payments and other new payment technology means that 4 in ten people predict they won’t use cash at all in ten years’ time, according to new research from Lloyds Bank.
Tips for using your contactless card
- If you have more than one contactless card, always remove the card from your wallet or purse when tapping it against the card reader – this avoids the risk of money being debited from both cards.
- Sometimes retailers offer to tap your card for you. It’s a good idea to ask to see the amount they’ve entered first.
- Occasionally you may be asked to enter your PIN number when making a contactless payment. This is an added layer of security to prevent someone who steals you card being able to make multiple payments.
- There are safeguards in place to make sure that even if you accidentally tap your card twice you’ll only be charged once.
- Fraud is rare on contactless cards. In the first half of 2014 total fraud was just £51,000 – 0.007% of all contactless spending according to figures from the UK Cards Association. The same fraud protection exists for contactless payment as for Chip and PIN transactions. Providing you’ve not acted fraudulently or without reasonable care, you won’t be out of pocket.
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