"The regulator is consulting on plans that would give banks and card providers the freedom to set their own limits, potentially making the four-digit PIN a rarity for UK shoppers. The changes would bring physical cards in line with digital wallets on smartphones, which already allow unlimited tap-and-go payments thanks to biometric security features such as fingerprints or facial recognition."
"Since their introduction in 2007, contactless card limits have risen steadily: from £10 initially, to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020 during the pandemic, and £100 in 2021. If approved, the latest plan could be rolled out as early as next year. However, the FCA stressed that any higher-value transactions would only be permitted for low-risk payments, with providers carrying the burden if fraud occurs."
The Financial Conduct Authority is consulting on proposals to allow banks and card providers to set their own contactless payment limits, potentially removing the current £100 cap and enabling unlimited tap-to-pay transactions. Physical cards would be aligned with smartphone digital wallets that use biometric security for unlimited payments. Any higher-value contactless payments would be restricted to low-risk transactions, with providers liable for fraud losses. Protections include PIN entry after five consecutive contactless payments or once cumulative spending exceeds £300, reimbursement rules for fraudulent use, and options for customers to lower or disable contactless features.
Read at Business Matters
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