To ask the Chancellor of the Exchequer, if he will hold urgent discussions with credit card companies on the possible increased potential for theft if companies proceed with plans to increase the contactless limit from £45 to £100 in October 2021.
At the 2021 Spring Budget the Chancellor announced changes to increase the legal single contactless payment limit from £45 to £100, and the cumulative transaction limit from £130 to £300. The legal contactless payment limits are set by the Financial Conduct Authority (FCA) through the Strong Customer Authentication rules, and the FCA has the power to amend these limits subject to public consultation and Treasury approval.
In line with this process, and prior to the Budget announcement, the FCA publicly consulted on increasing contactless limits. In making this decision, the FCA considered the risks to customers, including the impacts on fraud, alongside the benefits. When the limits were last raised in Spring 2020 from £30 to £45, there was no significant recorded increase in fraud levels.
The Government looks forward to the implementation of the new higher limits by industry in October, bringing benefits to consumers and businesses across the UK by making it easier than ever to pay safely and securely.