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Rollout of £100 contactless limit begins

However, the new £100 limit may not be available across all retailers immediately due to the number of terminals that need to be updated across businesses

The nationwide rollout of a new £100 spending limit for contactless cards has started today (15 October). 

Retailers across the UK will begin to accept contactless payments of up to £100, an increase from the previous £45 limit, which will reportedly give consumers “more flexibility” when shopping in-store. 

According to UK Finance, the move aims to help with bigger purchases “where speed and convenience are valued”. However, the new £100 limit may not be available across all retailers immediately due to the number of terminals that need to be updated across businesses. 

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The move comes as contactless payments have become increasingly common. According to statistics, between January and July of this year, 60% of all debit and credit card transactions in the UK were made using contactless. This accounted for 6.6 billion payments in total, with a value of £81.4bn.

The decision to raise the contactless limit to £100 was made by HM Treasury and the Financial Conduct Authority following a public consultation and extensive talks with both the retail and banking sectors. 

The limit had previously increased from £30 to £45 in April 2020.

UK Finance said that customers will be fully protected against any losses due to unauthorised card fraud. The same in-built security check will apply, whereby after a certain amount of contactless spending or transactions have been made, a PIN will need to be entered. 

David Postings, CEO of UK Finance, said: “The new £100 limit offers customers greater choice about how they pay for things like their weekly shop or a tank of fuel. 

Contactless payments have become increasingly popular, and the payments industry has worked hard to ensure retailers are able to offer customers the new higher limit.”

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