“Tap-and-go spending limit for cards was raised from £30 to £45
UK shoppers will now be able to spend up to £100 using contactless card payments from 15 October, more than doubling the limit on spending.
The cap placed on “tap-and-go” spending for cards was increased from £30 to £45 following the pandemic’s arrival as concerns grew over the virus being spread.
A number of outlets stopped taking cash payments, while some retailers decreased their prices in an effort to ensure that people would use their cards more often.
The fears have settled but, as with many things, the pandemic has introduced a permanent change, as Rishi Sunak confirmed the limit would double.
While the roll-out will begin on 15 October, some retailers will be accepting higher payments immediately.
Laura Suter, head of personal finance at AJ Bell, comments on the news that the contactless limit will increase to £100 on 15 October:
“Around half of all credit card transactions and two-thirds of all debit card transactions are contactless and this number will leap from October as people can use contactless for bigger items, like the weekly shop or filling up the car with petrol.”
“However, while the move brings more convenience for some it also carries two big warnings. First, it is a thief’s dream, as they can take far more of your money in each transaction if you card is lost or stolen. By spending £100 at a pop without having to put in a PIN, it would be very easy for thieves to blitz through money quickly before you even spotted the card had been nicked,” Suter added.
“Second, there is a risk for those who are in debt getting further into debt. The easier a card transaction is the less the consumer is actively thinking about how much they are spending, meaning it’s easier to rack up larger bills on a credit card.”
Super suggests that people should be able to set their own card limits if they want to, either to scupper thieves or for their own financial management.