Contactless payment limit could be increased to £100
Written by Hit Music Radio News on 27/01/2021
The contactless card payment limit for a single transaction could be raised to £100 – more than double the current amount.
Since the limit was raised from £30 to £45 at the start of the COVID-19 pandemic last April, people have increasingly made use of contactless payments, the Financial Conduct Authority (FCA) said.
The FCA said it is now consulting on raising the limit again.
“Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100,” it said.
The current £45 limit is three times the amount it was a decade ago.
There are concerns that increasing the contactless payment limit may lead to the end of customers using cash, but the Government intends to legislate to protect against this.
To prevent contact and protect customers during the pandemic, some retailers encouraged shoppers to pay by card, but a recent Bank of England study found the risk of catching coronavirus from banknotes was low.
The FCA made the comments as it confirmed further coronavirus support measures.
It said that for mortgage customers, it is extending current guidance so firms should not enforce repossessions, except in exceptional circumstances, before 1 April.
For consumer credit customers, it has updated the guidance so firms will be able to repossess goods and vehicles from 31 January.
The finalised guidance emphasises this should only be a last resort, subject to complying with government public health guidelines and regulations, for example on social distancing and shielding.
Firms will also need to consider the potential wider impact on vulnerable customers when deciding whether repossession of goods or vehicles is appropriate, the FCA added.
© Sky News 2020