From the 15th October 2021 contactless payment limit will rise from £45 to £100. This follows the increasing trend of customers using digital payments over cash, which has been declining rapidly for the last 10 years. This was further accelerated by the Covid pandemic as it became a safe way to pay, minimising contact with others.

Contactless Stats (June 2021)

• Contactless payments accounted for 51 percent of all credit card transactions
• Contactless payments accounted for 66 percent of all debit card transaction
• 8 out of 10 UK Adults used contactless payments in 2019

Why is the limit increasing?

According to the Financial Conduct Authority, they believe this will help to boost the economy following a turbulent 2020 and help to encourage spending. The increase is being supported by the government, banks and some retailers.

Why Do Consumers Like Contactless?

It’s easy, fast and you don’t need your card with you. Nowadays we can associate our cards to our phone and if we have left our cards at home, we can still pay. It also means that consumers don’t need to carry cash with them anymore if they choose not to do so.

The Negatives

There is the potential, that now the limit has been increased, that card theft will increase. Banks should regularly check and ask the customer to enter in their PIN to confirm it is genuine.

The negatives for businesses are minimal, making it easier to pay and should help to encourage consumer spending.

The good news for businesses is that if a fraudulent transaction is processed, face to face using contactless, the merchant (you) is not liable. The bank will also ensure the customer is refunded.

Things to consider

Customers can set their own contactless limit and can also turn off contactless through their banking app.

If they question why they can’t pay contactless it is best to ask them to check their individual contactless limit via their mobile banking app.

Contactless payments may from time to time require the customer to enter their PIN, when the bank wants to check that the transaction is authentic.

What you may need to do

In most cases, updates will be required to your PDQ machines to facilitate the increase. Contact your Card Payment Supplier before the 15th October to ensure that you have taken the necessary steps to support this.