Banks have announced that from 15 October, the maximum amount on a contactless card will be increased to £100.
The current limit is set at £45 and was raised from its previous level of £30 at the beginning of the pandemic.
Contactless cards are becoming increasingly popular as 66% of all debit card transactions are made using this technology, with many people now preferring this method over cash.
In 2007, when contactless cards were first introduced in the UK, they could only be used to make purchases of up to £10. The limit was then gradually raised, from £10 in 2007 to £30 in 2015.
The pandemic accelerated a move away from cash with shoppers actively encouraged to use contactless cards in many stores as close customer-staff interaction was seen as increasing the spread of the virus.
Academics, however, have warned that raising the limit to £100 could increase crime, and prove tempting for criminals to step up efforts to steal cards.
A report for UCL’s Jill Dando Institute of Security and Crime Science said credit and debit cards were known as “hot property” for criminals.
“Raising the contactless card limit to £100 would likely make card theft more attractive, increasing a broad range of acquisitive crimes including snatch theft of wallets and purses, hold-up robberies, and home and vehicle break-ins to find cards that can be used fraudulently,” the report said.
“Past experience suggests it could attract new cohorts of teen criminals who are more likely to progress to extended criminal careers, with implications for longer term crime rates”.
If your debit or credit card has been stolen and used to make purchases, Citizens Advice recommends you contact your bank immediately. The bank should refund any money lost as a result of fraudulent charges made on your account according to their policy.
Chancellor Rishi Sunak said: “Increasing the contactless limit will make it easier than ever to pay safely and securely. As people get back to the High Street, millions of payments will be made simpler, providing a welcome boost for retailers and shoppers”.
Given the number of terminals that will eventually need to be updated to accept the new limit, it could take some time for the new level to be fully introduced across all retailers.
