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Contactless cards payment limit raised to £15

Holders of Credit and Debit contactless payment cards in the UK can now spend up to a maximum of £15 in a single transaction without needing to present a PIN number of signature.

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2 March 2010

Contactless Payment Card Technology

Contactless technology is undoubtedly the future of payments”

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The limit was raised from £10 after requests by Visa and Mastercard, and this was approved by card providers and banks.

This new limit brings the UK closer to the limits in use within Europe, where contactless cards can be used for payments up to a limit of 25 Euro.

In the UK, it is estimated that one in seven residents will hold a contactless card by the end of 2010.

Contactless technology allows cardholders to press their card against a sensor to register a payment in over 8,000 stores across the UK. If the card is a debit card, then the money is then automatically deducted from their bank account. Credit card holders will find the amount is automatically added to their credit card bill.

In the UK, adoption of this technology has been somewhat slow, partially due to security concerns. However, in East Asia, the technology is commonplace, and the chip can be found in items such as watches and mobile phones.

With the new limit in place, if the payment is for an amount over £15, then cardholders are required to enter their PIN number. Cashback is not available with these contactless cards.

The increase in limit to £15 is aimed at improving the adoption of the technology by retailers. Demand from consumers has also played a role, according to a spokewoman from the UK Cards Association.

Anyone who receives a new Barclays Visa debit card will by default have the contactless technology built into the card. Around four million contactless Barclaycard credit cards have now been issued.

Brian Cunnington of Barclays said "Contactless technology is undoubtedly the future of payments and we are seeing it grow hugely in popularity. The new higher limit gives customers the flexibility of paying for even more transactions quickly, securely and conveniently via a contactless card payment and will lead to more retailers implementing the technology."

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Credit Cards	0% Balance Transfers	0% Purchases	APR Representative (Variable)
	Tesco ClubCard Credit Card
	9 months	15 months	16.9^%
16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable).
	Virgin Credit Card
	20 months	3 months	16.8^%
16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable).
	Barclaycard Platinum with BT
	22 months	3 months	17.5^%
17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable).
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