Increase in contactless card limits

It has been announced that the maximum transaction limit on contactless credit cards has been increased to £15, enabling those with contactless credit and debit cards to spend more on the card without having to provide a signature or put in a PIN number.

The contactless cards have been launched to offer speed and convenience for both consumers and retailers, but the limit that was originally put on these cards was £10.

However, according to reports the payment card giants Visa and Mastercard made a request for the limits on the contactless cards to be increased from £10 to £15, and this request was agreed by the banking industry and card providers.

It is thought that by the end of this year around one in every seven UK consumers will have a contactless credit card, and the increased limit will enable users to enjoy greater flexibility and more choice when using their card to make a payment.

Officials have said that the increase in the transaction limit on these cards will bring the maximum spend closer to the limits that are in place across Europe.

There is a maximum transaction limit of 25 Euros in the Eurozone, which is the equivalent of over £20. The cards are used by placing them close to specialist sensors, and the cardholder does not have to put in any PIN or sign any receipts in order to make their purchase, which makes things easier for the consumer and the retailer.

An official from Barclays stated: “Contactless technology is undoubtedly the future of payments and we are seeing it grow hugely in popularity. The new higher limit gives customers the flexibility of paying for even more transactions quickly, securely and conveniently via a contactless card payment and will lead to more retailers implementing the technology.”