Contactless card payment May be unlimited soon UK Financial services allow regulatory banks and other providers to scrap £ 100 cap.
Financial conduct authority (FCA) announced the proposal on Wednesday, which aims to give card providers flexibility to determine the transaction limit and set the correct limit to their customers.
The increase in the limit of previous transactions has expressed concern about fraud and theft, but the FCA has said that banks need to reimburse unauthorized fraud cases if a card is lost or stolen.
Executive Director of David Galle, Payment and Digital Finance FCASaid: “People are still preserved; even with contactless, the firm will return your money if your card is used fraudulently.
“We are looking at smart payment techniques and more well established fraud control, so this is the right time to make firms to pay contactless payments to meet their customers’ needs and run innovation.”
Changes may come early next year. Mr. Gale said: “While we will not expect to see immediate changes in the border by the firms, they will have flexibility to make the payment more convenient for customers.”
The limit of transaction started at £ 10 when contactless card payment was introduced in 2007. It was increased to £ 15 in 2010, £ 20 in 2012, £ 30 in 2015, £ 45 in 2020, and then to £ 100 in October 2021, where it has been sitting since then.
It will use debit and credit cards similar to the payment made through digital wallets, which have no limit. It may also require to observe a four -digit pin with shopkeepers capable of tapping your card for any purchase.
But when card providers will have flexibility to determine their limits, they will only allow high payment for low -risk transactions, the FDA said.
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Card providers already offer customers the option to change their transactions limit or stop paying completely contactless payments. The FCA said it would encourage providers to continue offering this option.
The proposal was one of the 50 measures which was determined by the FCA in a letter Prime Minister Sir Kire Stmper In January, aims to support economic development.
The letter stated that the FCA “wanted to delete the £ 100 contactless range, causing more flexibility to firms and customers to attract American experience, and to level the playground with digital wallets”.
The proposals for consultation are out by mid -October.