Lloyds Bank is aware of some customers feeling potentially vulnerable due to the introduction of a new contactless card limit. As a result, it is stepping in to provide reassurance to Britons on the matter by offering a way for individuals to protect themselves. The banking group is to allow its customers to set their own limits on contactless spending, depending on what they feel suits them.
Under the plans, individuals who hold a debit card with Lloyds Bank, Halifax and Bank of Scotland – all of which fall under Lloyds Banking Group – can set a limit from £30 to £100.
This can be undertaken in £5 steps in an effort to promote flexibility for contactless card users.
Britons will also be able to toggle contactless card functionality on and off via their banking app.
Philip Robinson, personal current accounts, payments and fraud and financial crime director at the banks, commented on the matter.
However, many are concerned about how it could be easier for criminals to use the card if it is misplaced, especially if the card has not yet been stopped.
From October 15, the contactless limit for card payments is set to increase generally from £45 to £100 in a momentous step forward for the method of payment.
The decision to raise the contactless limit was made by HM Treasury and the Financial Conduct Authority following a public consultation and discussions with the retail and banking sectors.
It follows an increase in April 2020, which saw the contactless card limit increase from £30 to £45.
It is expected to take some time for the new £100 limit to be introduced across all retailers as terminals will need to be updated to accept the new limit.
Those who are spending more than £100 will have other ways to pay including the more traditional Chip and PIN, and alternatives such as Apple Pay or Google Pay.
Commenting on the limit, David Postings, Chief Executive of UK Finance, commented on the matter.
He said: “Contactless payment has proved very popular with consumers and an increasing number of transactions are being made using contactless technology.
“The increase in the limit to £100 will allow people to pay for higher value transactions like their weekly shop or filling up their car with fuel.
“The payments industry has worked hard to put in place the infrastructure to enable retailers to update their payments systems so they can start to offer their customers this new higher limit.”
Lloyds Bank told Express.co.uk: “Contactless payments are subject to the same checks as other card payments. In the same way, anyone who does fall victim to contactless card fraud will never be left out of pocket. Fraud levels for contactless cards are lower than for non-contactless cards.”