Contactless card payment limit raised to £45

The spending limit for contactless card payments has been raised to £45 from £30 to support consumers during the COVID-19 pandemic.

The measure, announced last month by the UK Finance industry association following consultation between the retail sector and the finance and payments industry, came into force yesterday (1 April).

“The increase in the limit will not only give people the choice to opt for the speed and convenience of purchasing goods up to £45, helping to cut queues at the checkout, but it will also help to limit physical contact during this uncertain time,” said Stephen Jones, chief executive of UK Finance.

Helen Dickinson, chief executive at the British Retail Consortium, however, noted that not all retailers will be able to make the required changes to their payment systems straight away considering the ongoing virus outbreak.

“The rise to a £45 contactless limit has been expedited by the industry in response to the pandemic. However it will take time for this to take effect, and this may be slowed further as many retailers are already operating at peak capacity,” she said.

Jones said retailers can update their payments systems when they are ready as the infrastructure is now in place.

Consumers who need to spend more than £45 pounds will still be able to use chip & pin cards and contactless payments via mobile phone, which are not limited because they use biometric technologies to verify the presence of cardholders.

The Association of Convenience Stores has developed a poster that retailers can use in store to communicate the new contactless payment limit to customers.