The limit for contactless payments will more than double this Friday to Â£ 100.
The change has raised concerns about fraud, with around 135 million contactless cards in circulation and the contactless option already accounting for 9.6 billion payments per year.
Some experts fear that if you lose your card or have it stolen, the researcher can withdraw more of your money without any difficulty. Second, there are fears that some people will lose track of their spending and end up getting into debt.
Some banks are countering this problem by allowing their customers to opt out – from Friday customers of Lloyds Bank, Halifax and Bank of Scotland will be able to set their own limit between Â£ 30 and Â£ 95 using their mobile app.
The limit was first set at Â£ 10 in 2007, but has steadily increased. The limit of Â£ 30 was increased to Â£ 45 in April 2020 at the start of the coronavirus pandemic.
It has proven popular with consumers and the number of UK contactless payments increased by 12% in 2020.
In order to help the economy recover from the pandemic and reflect people’s preferred spending method, the Treasury and Financial Conduct Authority (FCA) announced in March this year that the limit would be raised to Â£ 100.
While the nationwide rollout begins this Friday, it may be some time before customers can use the facility at all outlets as retailers will need to update their terminals.
The British Retail Consortium (BRC) advised caution, with an article on its website stating: âCustomers should be extra careful when making contactless payments from October 2021 as different businesses may have limits different in place, or at a different stage of their role. -outside.
“Please make sure your transaction is successfully completed before leaving checkout.”