FCA plans to raise contactless ceiling to £100

The Financial Conduct Authority (FCA) said it will look into raising the limit on contactless payments from £45 to £100 to keep pace with a change in spending habits during the coronavirus crisis.

Shops have encouraged contactless payments to minimise physical interaction between people during the COVID-19 pandemic and raising the ceiling will be part of a wider examination of such changes, the FCA said.

“People are increasingly making use of contactless payments. It’s important that payments regulation keeps pace with consumer and merchant expectations,” the watchdog said in a statement.

The FCA also confirmed on Wednesday earlier proposals that banks should generally not enforce repossessions before 1 April, but credit providers would be allowed to repossess goods and cars from 31 January as a last resort.

Consumers struggling in the pandemic still have until March 31 to apply for a payment holiday for mortgages, personal loans, credit cards, store, cards, catalogue credit, motor finance, rent-to-own, buy now pay later, and pawnbroking, it said.

“If you apply by 31 March, you may be able to extend up to 31 July when all payment holidays will come to an end.”