Payment News

Implications of Higher Contactless Payment Limits

There are concerns that with the UK’s contactless limit rising to £100, crime is more likely. In addition, the lack of ‘friction’ at the point-of-sale could increase the risk to retailers of unintended losses from consumers who present a card without it registering and then leaving the shop.

The response is that the risks are low and consumers are well protected. The use of wallets on mobile phones is one protection.

Contactless fraud rates are, currently, equivalent to less than 1p in every £100 spent, and a small percentage of overall card fraud.

One view is that it is the responsibility of the consumer to monitor their accounts for unusual activity, to call their bank as soon as a card is missing or if they spot suspicious activity. If they do that, then they should be refunded. Which implies that if they do not, they should not be.