The CONTACTLESS CARD limit is set to increase to £100 next Friday and many consumers are worried about the negative effects this could have if one was to lose their card.
From October 15, shoppers will be able to make an in-store purchase of up to £100 without using their PIN. BBC Money Box listener Olivia called into the show on Saturday and said: “I think that the £100 contact limit is too high for someone like me.
“I feel like there’s more of a risk of being defrauded, and if you lose the card that someone can go on a spending spree and take all your money.”
Money expert Andy Webb spoke on BBC Money Box and gave his guidance on the increase, as well as things people should do if they do lose their cards.
He said: “The most you could potentially be defrauded of is £300, but you will get that back.
“The limit changes for each bank but the most you can spend with contactless is £300, or five uses.
“A lot of apps now as well, as soon as you find out this has happened, you can freeze your card straight away before you get on the phone to them, and it can stop any transactions taking place.”
Currently, regulations state that providers will prevent contactless payments where people try to spend above the contactless limit, where they’ve made more than five contactless transactions in a row using the same card, or where the total amount spent since people last had to verify a transaction exceeds £130 (this is changing to £300 from October 15).
Each bank has protocols in place to prevent fraud, but the Financial Conduct Authority has explained victims should be able to get their money back “without unnecessary delay”.
The contactless card limit increasing could be seen as a convenience to many people however others may fear the ease could cause them to overspend.
Mr Webb continued: “In lots of ways the convenience is great but on the flip side is the classic example where you’re in a busy bar and you order some drinks, and you go to pay and tap your card, but you can’t hear how much it is.
“There’s a danger of being overcharged, but then it’s also very hard to keep track of your spending so you. “Brinkwire Summary News”.