• Thu. May 19th, 2022

Mobile banking users warned of major change later this month

Buyers will soon be able to pay up to £ 100 with their contactless card, making payments even more convenient.

From October 15, the contactless limit for card payments will typically drop from £ 45 to £ 100 with the aim of making card transactions faster for customers.

But concerns have been expressed that the rule change increases the risk of fraud.

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To combat this risk, millions of mobile banking customers will soon be able to reach their own contactless limits.

Lloyds Bank, Halifax and Bank of Scotland customers will be able to use their mobile app to set their own contactless limits, ranging from £ 30 to £ 95.

The limit of £ 30 is still lower than the current limit of £ 45.

The limit can be set in increments of £ 5.

They will also be able to activate and deactivate the contactless feature. If they turn it off completely, they will need to enter a PIN code when making card transactions.

The contactless limits will be set at £ 100 by default.

Anyone who falls victim to contactless card fraud will not be left behind, Lloyds said.

Consumers will start to see retailers accepting contactless payments up to the new limit of £ 100 from October 15, although some retailers may take longer to update terminals.

Philip Robinson, Director of Personal Current Accounts, Payments and Fraud and Financial Crime at Banks, said: “When the contactless limit increases, our customers will be able to use new tools in our mobile app to turn on and off. contactless and also set their own transaction limit.

“We have listened to customer feedback to present this option which will allow them to get the most out of the £ 100 limit in a way that is convenient for them. “

David Postings, Managing Director of UK Finance trade body, said: “Contactless payment has proven to be very popular with consumers and an increasing number of transactions are being carried out using contactless technology.

“Raising the limit to £ 100 will allow people to pay for higher value transactions like their weekly store or refueling their cars.

“The payments industry has been working hard to put in place the infrastructure for retailers to update their payment systems so they can start offering their customers this new, higher limit.”

Chancellor Rishi Sunak said: “The increase in the contactless limit will make it easier than ever to pay securely, whether at local stores, or at your favorite pub and restaurant.

“As people return to Main Street, millions of payments will be streamlined, offering a welcome boost to retailers and shoppers. “

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