Big change to the way you pay at tills as card limit could be AXED
A huge change that could affect the way you pay at tills is set to be rolled out soon.
Brits could soon wave goodbye to the limit on contactless payments, making it easier to splash the cash with just a tap.
Until now, contactless payments have been subject to a £100 spending limit.
But regulators are now looking at scrapping the cap altogether, letting banks and payment providers set their own limits instead.
It’s part of a shake-up aimed at boosting economic growth, with officials urging regulators to be more “pro-growth” and less focused on “red tape”.
The move would mean you could make big purchases without the faff of entering your PIN or fumbling for cash.
From buying a new sofa to nights out, the sky could be the limit if the plans get the green light.
It’s all about making life easier – but naturally there’s a flip side.
Critics warn that ditching the limit could leave people vulnerable to fraud if cards are lost or stolen.
Contactless is convenient, but it’s also a goldmine for opportunistic thieves.
Without a limit, people will need to be extra cautious about their cards.
What happens if contactless is used to make fraudulent payments?
Right now, banks offer protections against dodgy transactions, but a higher limit might mean bigger losses before the fraud is even spotted.
If your card is lost or stolen, it is important to report it to your bank as soon as possible as they will cancel the card, which should stop it being used to make any further payments.
Most banks say they will refund fraudulent purchases made using your card.
Visa said banks will “investigate and aim to give your money back as quickly as possible”.
“In most cases, your bank will return your money to you immediately while they investigate”.
But it is important to report the lost card or unauthorised payments as soon as possible, as you could be liable for any losses before it is reported up to a maximum of £50.
The UK first introduced contactless payments in 2007 with a £10 cap, which has steadily increased over the years. The current £100 limit came in during 2021.
Since then, tap-to-pay has soared in popularity, with millions ditching cash for the ease of a quick tap at the tills.
But not everyone is on board with the idea of going limitless.
Is the contactless limit different for Apple Pay and Google Pay?
Apple Pay and Google Pay already allow users to make contactless payments over the contactless limit.
However, the transaction is subject to approval from both your bank and the retailer.
Apple Pay works by adding your debit or credit card to the wallet in your smartphone and using the touch ID or facial recognition software to confirm the contactless payment.
Google Pay operates in a similar way as users simply take a photo of their card before using the app to make contactless payments in stores.
In the U.S., there is no fixed national limit for contactless payments, allowing most transactions of any amount to be made using contactless methods.
But for larger transactions, typically above $100, merchants or card issuers may require verification through a signature or PIN, depending on their policies.
However, consumer groups are worried if we were to follow the US, it could encourage overspending, especially in a cost-of-living crisis where every penny counts.
The FCA has confirmed that at this stage plans for removing the contactless limit are being consulted on and has not been confirmed as yet.
The idea comes alongside other changes being considered to shake up the financial sector.
Mortgage rules could also be relaxed, making it easier for first-time buyers to get on the property ladder.
Banks may soon have more freedom to take “responsible risks,” potentially allowing buyers with smaller deposits to secure loans.
Labour’s shadow chancellor Rachel Reeves has been pushing for a “mindset shift” in regulation to spur growth and innovation.
For now, shoppers will have to wait and see if regulators tap into the idea of limitless contactless.
If they do, expect big changes at the checkout – and be ready to tap carefully.
Meanwhile, that’s not the only change Brits should expect to see at the till.
A huge change at supermarket petrol stations means customers are to be hit with new rules for buying pay-at-the-pump fuel.
New industry requirements mandated by Visa and Mastercard mean petrol stations will operate differently.
Some stations will now require a £100 pre-authorisation fee before motorists can fill up as part of the shake-up.
Elsewhere, with the potential limitless change looming around the corner, shoppers might be worried about controlling spending habits.
Budgeting apps are a great way to help you stay on top of your finances.
The Sun has looked at the best free bank budgeting tools that you already have on your phone and could help you watch your pennies.
Credit card need-to-knows
Not using a credit card effectively can wreak havoc on your finances and your credit score.
If you don’t keep up with repayments or default on your debt, you are likely to get a black mark on your credit record, which could affect your ability to get a credit card, loan or mortgage in the future.
It’s important not to let yourself get sucked into overspending.
You should always clear the full balance as soon as possible.
If you have a poor credit score, don’t bank on being approved for a card or getting the 0% deal you’d hoped for.
Card providers only have to give the advertised rate to 51% of applicants, so you could end up paying more interest than you bargained for.
If you’ve got a poor credit record, you’re less likely to get the best rates.
And if you are looking for a new credit card, don’t apply for lots at once.
After your 0% period is up, lenders can charge upwards of 40% interest, so if you have not repaid the debt fully by then, try to move the debt onto another 0% deal.