Contactless card changes explained in full – as limit rises to £100 next week

The threshold for how much you can spend by tapping your card without entering your pin is rising to £100 from October 15. The current limit is £45 so the change marks a £55 increase

The contactless card payment limit is being increased next week in a move that will affect almost everyone across the UK.

The threshold for how much you can spend by tapping your card without entering your pin is rising to £100 from October 15.

This is up £55 from the current £45 contactless limit.

The increase was first confirmed by Chancellor Rishi Sunak in the March Budget with UK Finance and Visa rolling out the changes next week.

Mr Sunak said at the time: “As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping.”

Any payments over £100 via a credit or debit card will still require the use of Chip and PIN from October 15.

The tap and go limit was originally just £10 when it launched in 2007 but has risen steadily over the years.

It increased to £15 in 2010, £20 in 2012 and £30 in 2015 before rising to its current level of £45 during the Covid pandemic last year.

Mobile payments, such as those made via Apple Pay or Google Pay, do not have an upper spending limit when verified through your fingerprint or facial recognition.

However, a retailer or your card provider itself may still put limits in place.

Are you worried about the contactless limit increasing? Let us know in the comments.

Will I ever need to enter my PIN?

At the moment, the amount you can spend on multiple contactless transactions in a row before having to enter your PIN is £130.

But this is rising to £300 from October 15, although payment providers can set different limits if they want to.

A higher limit does mean thieves may be able to spend more on your card before they’re asked for a PIN.

Can I set my own contactless limit?

Yes, some banks have already confirmed that you’ll be able to set your own contactless limit – and many more are expected to follow suit.

Customers who bank with Lloyds Banking Group, which runs Lloyds, Halifax and Bank of Scotland, will be able to choose a limit between £35 and £95.

You can also choose to turn off contactless completely if you wan to.

Starling Bank will let users set their own limit in £10 increments or turn off contactless.

Barclays, Nationwide, Natwest, RBS, Santander and TSB will let customers turn contactless off completely, but not set their own limit.

Why is the contactless limit changing?

The decision to raise the contactless limit to £100 was made by the Treasury and regulator the Financial Conduct Authority (FCA).

It is in response to changing consumer behaviours with less people using cash.

However, the FCA says it doesn’t believe the changes will affect vulnerable people being able to access cash.

Sheldon Mills, executive director, consumers and competition said: “During the pandemic more people have been using contactless payments.

“We are changing our rules to help the industry continue to respond to the changing ways in which people prefer to pay.

“Increasing the regulatory limits allows industry to raise the contactless limit in the future to meet the evolving expectations of customers and merchants for fast but secure ways to pay.

“When making any change, it is important that the industry continues to ensure the right protections are in place to keep payments safe and secure.”

A UK Finance spokesperson said: “The contactless limit increase to £100 will allow customers to pay for higher value transactions like their weekly shop or filling up their car with fuel.”