Contactless card payment limits are set to increase to £100 per transaction in mid-October. The move adds an extra £55 to the current threshold of £45.
The new limit was first announced in the March budget by Chancellor Rishi Sunak. This week, industry body UK Finance and Visa confirmed a launch date of October 15.
“The decision to raise the contactless limit to £100 is a good move for British shoppers and for our high streets alike,” a Visa spokesperson said. “Contactless payments offer a fast and seamless payment experience. Furthermore, contactless remains one of the most secure ways to pay, with one of the lowest fraud rates of any type of payment.”
A UK Finance spokesperson added: “The payments industry has worked hard to put in place the infrastructure to enable retailers to update their payments systems when they are ready.
“The contactless limit increase to £100 will allow customers to pay for higher value transactions like their weekly shop or filling up their car with fuel.”
‘Tap and go’ cards were first launched in 2007, with a £10 limit, gradually rising to £45 in April 2020 when many retailers encouraged shoppers to pay by card in response to the Covid pandemic.
Mr Sunak said: “As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth.”
Increases in the contactless spending limit will allow customers able to use the technology to make larger purchases with a quick swipe or a thumbprint on their phone.
Pete Wickes, EMEA General Manager for Worldpay from FIS, said it was likely to have a positive impact for consumers as society became increasingly cashless – but he added that around 40% of Brits still have lingering doubts about contactless security.
Wickes also commented: “The decision to raise the contactless limit to £100 is a good move for British shoppers and for our high streets alike. Contactless payments offer a fast, and seamless payment experience. Furthermore, contactless remains one of the most secure ways to pay, with one of the lowest fraud rates of any type of payment.”