Thousands of bank customers think new contactless limit is 'too high'

Thousands of bank customers are avoiding the new £ 100 contactless card limit introduced earlier this month.

The Treasury Department has increased the £ 45 limit available for contactless payments – but a digital bank says customers are choosing lower limits for their owner instead.

The digital bank Starling has decided to give its customers the option to set their own contactless limits on a scale of up to £ 100.

But after The times50,000 of their 2.5 million customers have chosen their own limit, with £ 50 being the most popular amount.

The government hoped that raising the contact limit to £ 100 would stimulate spending to recover the economy after 18 months of coronavirus restrictions and would represent a symbolic break with UK rules.

The limit had just been increased from £ 30 last year to £ 45 at the start of the Covid-19 lockdown.

Starling isn’t the only bank that lets customers choose their own limits, Lloyds Bank lets people choose their own limits between £ 30 and £ 95 if they want another option.

The Financial Conduct Authority had previously said that 20 percent of people felt the existing £ 45 limit was too low, while around 62 percent thought it was about right.

UK Finance, the banking trade organization, said: “There is no significant demand from consumers – including contactless users and non-users of contactless users – to raise the single value limit above £ 45.

“Contactless users are settling for a more conservative limit, indicating that £ 45 is more than enough.”

In July there were an estimated 1.22 billion contactless transactions valued at around £ 14.9 billion, which means the average payment value was around £ 12.19.

The British Retail Consortium trade association said that the adoption of the new limit by stores not required to accept payments of £ 100 could be slower than expected due to “unresolved concerns” among some of its members and lack of customer demand.

You can find more stories from where you live at Near you

.

Leave a Comment