Contactless card limit upped to £100
It's gone up from £45
Last updated 24th May 2022
From today you can use your contactless card for items up to £100 after the limit was raised from £45.
Although the limit will be increased from today (Friday 15th October), it may take "days, weeks, or even months" for some retailers to make the necessary changes, according to the British Retail Consortium.
This is because some retailers' card terminals are being updated sooner than others, so customers will need to check with individual stores.
This is the fifth time the contactless limit has been raised, when it started back in 2007, the original limit was £10.
Contactless in Covid
The limit was set at £45 in April 2020 in the early phases of the pandemic to help avoid physical interaction and the exchange of money between staff and shoppers.
Between January and July 2021, 60% of all UK debit and credit card transactions were contactless, according to UK Finance.
That's a massive increase from five years ago, where just 7% of all payments were made using contactless cards.
Some banks will enable users to set their own contactless card limits less than the £100 cap, or disable contactless altogether.
David Postings, chief executive of UK Finance, said: "The new £100 limit offers customers greater choice about how they pay for things like their weekly shop or a tank of fuel.
"Contactless payments have become increasingly popular, and the payments industry has worked hard to ensure retailers are able to offer customers the new higher limit."
More opportunity for fraudsters?
There has been concerns over the increased limit around the potential for fraud, with some worrying that the public would be at risk of losing more money if their card was lost or stolen.
Sarah Pennells, consumer finance specialist at Royal London, said: "Although fraud on contactless cards is relatively low level, it can be distressing to those who experience it.
"You should treat your contactless card the same way as you'd treat cash in your pocket, so be careful when you use it and don't give it to anyone else."
A Financial Conduct Authority spokesman said: "Available fraud rate data suggests there to be no significant increase in contactless payment-related fraud since industry increased the limit to £45 in April 2020.
"What's more, we have seen no material increase in fraudulent transactions in other countries where the contactless limit increased to the equivalent of £100 or above."
Fraud protection rules state that refunds can be claimed if unauthorised payments are made on your card.
UK Finance says people should contact their bank immediately if their card gets lost or is stolen, or if they notice any strange actions on their account.
Hear the latest news on Downtown on FM, DAB, smart speaker or the Rayo app.