Millions of people will be able to set their own contactless card payment limits or even have no limit at all, a regulator has confirmed.
Warning for Apple Pay and Google Pay users ahead of payment rule change
A warning has been issued to Apple Pay and Google Pay customers and users – ahead of a contactless card rule change. Millions of people will be able to set their own contactless card payment limits or even have no limit at all, a regulator has confirmed.
Banks and card providers will be given the power, from March, to set a maximum – or unlimited – single payment amount without the need to enter a four-digit PIN.
Nicola Morgan, financial services expert at comparison site confused.com, said: “For many, contactless has become the simplest way to pay, and giving banks and customers more flexibility to set their own limits could make everyday purchases quicker and more convenient.
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“But it’s important to balance convenience with security. Contactless payments don’t require a PIN, which means they’re easy to use, but that also means it’s vital to manage your own settings carefully.”
She explained: “Paying with your phone often includes biometric security (like fingerprint or face ID), adding an extra layer of protection for bigger spends.
“Our research shows over one in three (35 percent) UK adults use Apple pay or Google pay for everyday spending.”
Ms Morgan went on and said: “Many banks already reimburse unauthorised contactless transactions, but it’s worth double-checking what’s covered and how quickly you’d be refunded.”
And she said: “Checking your transactions regularly, especially after shopping trips, this means you can spot anything unusual quickly.”
Consumers would still get their money back if it was stolen by fraudsters, according to David Geale, executive director of payments and digital finance at the FCA.
“Contactless is people’s favoured way to pay,” he said. Speaking on the BBC’s Today programme, Mr Geale said while the system works well, rigid limits could “slow things down”.
“So what we want to do is give banks and payment firms greater flexibility to set their own approach to contactless payment, where they see low risk of fraud,” he said.
Jana Mackintosh, managing director of payments and innovation at UK Finance, which represents banks, said: “Any changes made in the future will be done carefully and ensure strong security and fraud controls remain in place.”
“But what we’re really encouraging is that they’ll open up that flexibility for customers to set their own limits,” Mr Geale added.