A new change for that will affect millions of shoppers is coming into force this week. It comes as the regulator, Financial Conduct Authority (FCA), has introduced the change, which will make it easier for customers to shop using their cards.
Currently, people can make payments of up to £100 per transaction with their physical contactless cards, and then have to use their chip and pin once the total exceeds that limit. However, things are changing from March 19.
Banks and payment providers with strong fraud controls will be permitted to allow customers to set their own limits or turn off contactless payments. Providers also have the option to lift the £300 cumulative limit or the rule of five ‘taps’ before shoppers have to enter their PIN.
The majority of shoppers across the UK now use contactless on their phone or with their physical cards to pay for a variety of goods and services, and according to the FCA, the changes coming into effect in days will enable firms to respond more effectively to changing consumer demands, technology, and inflation.
David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
In other news of contactless payments. Passengers will now be able to use contactless when using the Glasgow subway. People will not be able to touch their credit cards, debit cards, and mobile wallets on the reader to board and exit the trains.
It comes as Strathclyde Partnership for Transport (SPT) said that since 2020, it had seen a significant turn from cash to debit and credit card payments.
It added that the introduction of contactless payments was the most convenient option for many customers, but that all existing payment options, including cash at ticket offices and ticket vending machines, will remain available.
