From Friday October 15, the spending limit for contactless payments will increase to £100. The change is designed to make payments even easier and quicker for consumers, providing consumers with choice as to how they intend to make a purchase.
The decision follows the successful spending limit increase from £30 to £45 during the pandemic in 2020 and has been approved by HM Treasury following public consultations and discussions from both banking and retail sectors. Whilst there has been some speculation regarding the safety of the increase, Barclaycard has stated that the fraud liability shift will remain in place, and there is no further risk to accepting higher contactless value transactions.
The software on card payment machines will be updated to accept the new £100 limit, although this may be gradual as the increase will affect thousands of terminals nationwide. Retailers may need to contact their point of sale provider to make these changes.
The decision has been praised as a method to increase footfall amongst businesses and will provide additional convenience for retailers and consumers alike.