Lloyds Bank Introduces Way To Stop Contactless Card Fraud As Limit Rises To £ 100 | Personal Finances | Finance
Lloyds Bank is aware that some customers are feeling potentially vulnerable due to the introduction of a new contactless card limit. As a result, he intervenes to reassure the British about this by offering individuals a way to protect themselves. The banking group must allow its customers to set their own limits on contactless spending, according to what suits them.
Under these plans, people with debit cards from Lloyds Bank, Halifax and Bank of Scotland – all of which fall under the Lloyds Banking Group – can set a limit of £ 30 to £ 100.
This can be undertaken in stages of £ 5 with the aim of promoting flexibility for contactless card users.
Brits will also be able to activate and deactivate the contactless card functionality through their banking app.
Philip Robinson, director of personal checking accounts, payments and bank fraud and financial crime, commented on the issue.
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However, many are concerned about how it might be easier for criminals to use the card if it is misplaced, especially if the card has not yet been blocked.
From October 15, the contactless limit for card payments is generally expected to drop from £ 45 to £ 100, which is a big step forward for the payment method.
The decision to increase the contactless limit was taken by HM Treasury and the Financial Conduct Authority following public consultation and discussions with the retail and banking sectors.
This follows an increase in April 2020, which saw the limit for contactless cards drop from £ 30 to £ 45.
Introducing the new £ 100 limit at all retailers is expected to take some time as terminals will need to be updated to accept the new limit.
Those who spend over £ 100 will have other ways to pay, including the more traditional chip and PIN, and alternatives like Apple Pay or Google Pay.
Commenting on the limit, David Postings, Managing Director of UK Finance, commented on the question.
He said: “Contactless payment has proven to be very popular with consumers and an increasing number of transactions are being carried out using contactless technology.
“Raising the limit to £ 100 will allow people to pay for higher value transactions like their weekly store or refueling their cars.
“The payments industry has been working hard to put in place the infrastructure for retailers to update their payment systems so they can start offering their customers this new, higher limit.”
Lloyds Bank told Express.co.uk: “Ccontactless payments are subject to the same controls as other card payments. Likewise, anyone who is the victim of contactless card fraud will never be left behind. Fraud levels for contactless cards are lower than for contactless cards. “