Volume of contactless transactions set to surge from October. Experts have warned that it could be a thief’s dream and poses danger of people racking up higher debts.
Laura Suter, head of personal finance at AJ Bell, said: “Less than 18 months ago the limit on contactless cards was just £30 and from October it will rise dramatically to £100 per transaction. The move is intended to make it easier to shop in-store, after the pandemic brough with it a surge in people using contactless cards.
“Around half of all credit card transactions and two-thirds of all debit card transactions are contactless and this number will leap from October as people can use contactless for bigger items, like the weekly shop or filling up the car with petrol.
“However, while the move brings more convenience for some it also carries two big warnings. First, it is a thief’s dream, as they can take far more of your money in each transaction if you card is lost or stolen. By spending £100 at a pop without having to put in a PIN, it would be very easy for thieves to blitz through money quickly before you even spotted the card had been nicked.
“Second, there is a risk for those who are in debt getting further into debt. The easier a card transaction is the less the consumer is actively thinking about how much they are spending, meaning it’s easier to rack up larger bills on a credit card.
“People should be able to set their own card limits if they want to, either to scupper thieves or for their own financial management.”