Fraud fears at £100 limit for contactless

The limit on contactless payments issettorisefrom October, for the second time in less than two years, as the government tries to get people to spend more in shops.

Shoppers will be able to spend up to £100 using contactless cards from October 15, trade body UK Finance said. Increasing contactless limits has sparked concerns that this could make it easier for fraudsters to steal people’s money.

Gareth Shaw, head of money at consumer research and advice body Which?, said: “The risk of falling victim to contactless card fraud is currently low but there is potential for thefts to rise if criminals take advantage of the increased spending limit to maximise the amount they can steal.”

Some shops might take longer to introduce the new limit, because they need to update their terminals.

David Postings, chief executive of UK Finance, said: “Contactless payment has proved very popular with consumers and an increasing number of transactions are being made using contactless technology.”

UK Chancellor Rishi Sunak said: “Increasing the contactless limit will make it easier than ever to pay safely and securely, whether that’s at the local shops, or your favourite pub and restaurant, providing a welcome boost for retailers and shoppers.”

When contactless cards were first introduced in 2007, payments were capped at £10.

This rose to £15 in 2010, £20 in 2012, £30 in 2015 and £45 in April last year in the early days of the pandemic.