Plans have been announced that from March banks will be free to remove the £100 limit on contactless cards
The move brings them in line with contactless payments through a smartphone. Banks are being encouraged to let customers choose their limit
The Financial Conduct Authority (FCA) has announced that banks and payment providers that demonstrate strong fraud controls will be allowed to set their own limit for contactless payments, giving way to greater flexibility in responding to consumer demands.
Richard Whittle, an economist at the University of Salford, said:
“If this ease of payment leads to consumers spending without thinking, they may be more likely to buy what they don’t really want or need.
“This could be a particular issue with credit cards, when people are spending borrowed money and accumulating debt.”
He believes regulators should consider whether to have different rules for contactless credit cards than for contactless debit cards – particularly around Christmas when spending increases.
