Auto Amazon Links: No products found. Blocked by captcha.
Starting from March, millions of people will have the option to customize their contactless card payment limits, including the possibility of having no limit at all, according to confirmation from a regulator. Banks and card providers will be empowered to determine a maximum—or even unlimited—single contactless payment without requiring a four-digit PIN. At the same time, the Financial Conduct Authority (FCA) is encouraging these providers to allow cardholders the freedom to set their individual limits or to disable contactless payments altogether, a feature that some banks already offer.
The FCA has indicated that it does not expect immediate changes to the existing £100 contactless payment limit when the new regulations come into effect. Nonetheless, card providers will have the flexibility to alter these limits if they choose. Historically, contactless payment caps have gradually increased since their introduction in 2007, starting at £10 and rising incrementally to £100 by October 2021, with notable jumps during the Covid-19 pandemic. Meanwhile, smartphone payments are not subject to such limits, thanks to security measures like biometric authentication including thumbprints and face recognition.
Concerns about the new flexibility focus on the potential for higher-value contactless transactions to attract theft and fraud. Currently, protection mechanisms prompt users for a PIN after multiple consecutive contactless payments. Additionally, consumers are protected against fraudulent charges, with the FCA assuring that customers will be reimbursed if unauthorized transactions occur. David Geale, executive director of payments and digital finance at the FCA, emphasized the importance of maintaining consumer choice and flexibility in payment methods. He commented, “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.” Similar systems allowing industry-set limits are already in place in countries such as Canada, Australia, and New Zealand. UK Finance’s managing director, Jana Mackintosh, also stressed the need for any future changes to maintain strong security and fraud controls.
Despite these regulatory developments, an FCA survey revealed that 78% of consumers opposed changing the current £100 limit. Critics highlight concerns that unlimited contactless payment might encourage more impulsive spending, especially with credit cards, potentially leading to greater personal debt. Charities focused on financial abuse have raised alarms that unrestricted contactless payments could give abusers unfettered access to drain survivors’ bank accounts without triggering alerts. This issue also touches on broader worries about the move toward a cashless society, which could affect vulnerable individuals who rely on cash because their card usage is being monitored by abusive parties. To counteract challenges posed by the closure of bank branches, initiatives like shared banking hubs have been introduced. For example, Cash Access UK recently celebrated the launch of its 200th banking hub in Billericay, Essex, aiming to ensure continued access to cash for those in need
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.