Not sold on the latest contactless limit increase? Well, you’re not alone. Depending on who you bank with, though, you might be able to ask for a lower limit. Here’s what you should know.
What is the contactless limit?
The contactless limit is the maximum amount you can pay using a contactless card before you have to enter your PIN for verification.
From 15 October 2021, the contactless limit will rise from £45 to £100. So, if you have a contactless card, you can go into a shop or business and spend £100 without using your PIN.
You can also spend up to £300 across separate transactions – up from £130 – before you’ll be asked to enter your PIN.
This is quite a jump from the current limits that came into effect during the 2020 Covid-19 lockdown to help people shop safely by reducing physical contact. But what’s behind this latest limit increase?
Why is the contactless limit increasing?
There are three main reasons for the limit increase.
Firstly, we’re still dealing with the Covid-19 pandemic. While many of us are out and about more, it’s still a good idea to limit the amount of contact we have with ‘public’ surfaces like card machines.
Secondly, for many, it’s more convenient to shop without using a PIN. If you’re buying groceries or filling the car with petrol, for example, you can now just tap and go without inserting your card into the machine.
And finally, there’s a hope that the limit increase will help the high street recover from the impact of multiple lockdowns.
Are there any downsides to the new contactless limit?
Unsurprisingly, not everyone is happy about the new limit increase. Why? Well, higher contactless spending comes with a few drawbacks. Here are three of them:
- Since you can spend up to £300 without entering a PIN, there’s possibly a higher risk of credit card fraud.
- Thieves may be more tempted to steal wallets, bags and purses if they know they might acquire a few contactless cards.
- It could be easier for people to lose track of their spending since it’s so quick and simple to tap and go.
If you’re a little wary of the limit increase, is there anything you can do? Maybe. It depends on your bank.
Can I set my own contactless limit?
There’s great news for some cardholders. A few banks have responded to customers’ concerns by letting them choose a lower limit. You can customise your contactless limit if you have a credit or debit card with:
- Lloyds
- Halifax
- Bank of Scotland
If you’re a customer, you can set a limit of anything between £35 and £95 once the increase goes live. You can even switch off contactless payments entirely if you prefer. Simply log in to your account through the app and set your preferences.
Do you have a debit or credit card elsewhere? Currently, you can’t change your contactless limit, but that’s not to say things won’t change in the future.
Takeaway
While the higher contactless limit works for some Brits, others might be a little sceptical about the increase. If you’re really worried, you can always think about switching banks so you have more control over your limit. Or, if you’re shopping for a new credit card, you might check out banks that allow you to set your own limit.
Just remember, though, that whatever the contactless limit, your bank should still refund you for fraudulent activity if your card’s stolen – ask your bank for more details.
Could you be rewarded for your everyday spending?
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About the author
Jennifer is a writer specialising in debt, personal banking, and small business finance.
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