A major change is planned for contactless cards which will allow cardholders to spend more money per transaction without entering their PIN code.
A change, which is slated for October 15, will see the limit drop from a spending cap of £ 45 to £ 100.
With nearly two-thirds of all debit card transactions now conducted through contactless technology, the change should benefit buyers.
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However, concerns have been raised over exposure to theft, with the limit set to increase by more than double this month according to Live chronicle.
Affected cardholders may be able to set their own limit for contactless payments, provided their bank allows it.
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The maximum amount rose from £ 30 to its current level of £ 45 at the start of the pandemic last year, and plans to increase it further were announced in the budget in March.
The Financial Conduct Authority is currently asking banks to block contactless payments when cardholders have made more than five consecutive contactless transactions or when the total amount spent since the last PIN entry reaches £ 130.
The cap on the total amount spent is expected to rise to £ 300 on October 15, in line with the one-time payment limit of £ 100.
Payment providers have the option of setting their own tighter limits, but some fear that next week’s increase may be tempting for criminals.
A report for UCL’s Jill Dando Institute of Security and Crime Science, said credit and debit cards were known as “hot commodities” for criminals.
“Past experience suggests that this may attract new cohorts of teenage criminals who are more likely to advance into prolonged criminal careers, with implications for longer-term crime rates,” the report says.
However, the Treasury said there was no significant increase in reported frauds when the limit rose from £ 30 to £ 45 last year. He added that the reported fraud amounted to 0.02% of the total spent with contactless cards since April 2020.
When contactless card payments were introduced in 2007, the transaction limit was set at £ 10. The limit was increased to £ 20 in 2012 and then to £ 30 in 2015.
Account holders at Bank of Scotland, Halifax, Lloyds and Starling can set their own contactless limits, and others are expected to do the same in the future.
Although Barclays, Monzo, RBS, Santander, and TSB don’t allow you to set your own limit, you can turn off the contactless feature on your card altogether.
Nationwide and HSBC will not allow you to do this either, nor will American Express, MBNA, or Capital One credit card companies.