FCA Proposes End to Contactless Payment Limits, Enabling Unlimited Transactions

Contactless Card Payments Could Become Unlimited Under New Plans The Financial Conduct Authority (FCA) has proposed a significant change to contactless card payments, which could see the current 100 limit scrapped in favor of unlimited transactions. According to sources, banks and other providers would be allowed to set their own limits, potentially paving the way for purchases over 100 to be made with just a tap of a card. The move reflects the growing trend towards digital payments and the increasing use of contactless technology. "This proposal is about keeping pace with changing consumer behavior," said an FCA spokesperson. "As people become more comfortable using digital wallets on their smartphones, we want to ensure that cards are equally convenient." When contactless card payments were first introduced in 2007, the transaction limit was set at 10. The limit has been gradually increased over the years, reaching 100 in October 2021. However, each rise has been met with concerns about theft and fraud. The FCA's proposal would allow card providers to set their own limits, potentially leading to a more flexible approach to contactless payments. "This is not about removing security measures," said the spokesperson. "Card providers will still be required to implement robust anti-fraud measures to protect consumers." Industry experts have welcomed the move, citing its potential to simplify transactions and reduce the need for cash. "Unlimited contactless payments would bring cards in line with digital wallets, making it easier for people to make purchases without having to carry large amounts of cash," said a spokesperson for a leading payment processing company. The proposal is set to be put in place early next year, pending approval from regulatory bodies. If implemented, it could have significant implications for retailers and consumers alike. "This change would allow businesses to offer more flexible payment options, while also reducing the risk of card skimming and other forms of theft," said a retail industry spokesperson. The FCA's proposal is part of a broader effort to modernize payment systems and keep pace with changing consumer behavior. As technology continues to evolve, it remains to be seen how this new approach will shape the future of contactless payments. Background: Contactless card payments have become increasingly popular in recent years, with millions of transactions taking place every day. The current 100 limit was introduced in October 2021, following a series of increases over the past decade. Implications: The proposal to scrap the 100 limit and allow unlimited contactless payments could have significant implications for retailers and consumers alike. It could simplify transactions, reduce the need for cash, and offer more flexible payment options. Next Developments: The FCA's proposal is set to be put in place early next year, pending approval from regulatory bodies. If implemented, it could pave the way for a new era of contactless payments, with unlimited transactions becoming the norm. *Reporting by Bbc.*