Call for Higher Contactless Payment Limits

UK Finance, who represent the banking industry, are reported by The Times newspaper to have asked the Treasury to increase the contactless payment limit from £45 to £100. Prior to the COVID pandemic the limit had been £30. The Financial Conduct Authority would have to approve any change.

In 2019, according to UK Finance figures, contactless card fraud was about 2.6p per £100 spent, including mobile phone contactless payments which have no payment limit and so have a higher payment value. Mobile contactless payments are regarded as more secure than cards, so it is likely that the fraud figure for contactless card fraud alone is higher. This figure is not currently published.

In the first half of 2020, contactless card fraud fell 20% to £8.2 million, about 2p per £100 spent. This is the first time there has been a decrease in contactless losses since data started to be collected. This was due in part to the reduced opportunity for fraudsters to take advantage of contactless during the lockdown period of the pandemic.