Mobile banking users warned over major change later this month – Liverpool Echo

Shoppers will soon be able to pay up to £100 using their contactless card making payments even more convenient.

From October 15, the contactless limit for card payments will increase generally from £45 to £100 in a bid to make card transactions swifter for customers.

But concerns have been raised that the rule change increases the risk of fraud.

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To combat this risk, millions of mobile banking customers will soon be able to their own contactless limits.

Lloyds Bank, Halifax and Bank of Scotland customers will be able to use their mobile app to set their own contactless limits, of between £30 and up to £95.

The £30 limit is even lower than the current £45 limit.

The limit can be set in increments of £5.

They will also be able to toggle contactless functionality on and off. If they turn it off completely, they will need to enter a Pin when making card transactions.

Contactless limits will be set at £100 by default.

Anyone who falls victim to contactless card fraud will not be left out of pocket, Lloyds said.

Consumers will start to see retailers accepting contactless payments up to the new £100 limit from October 15, although it could take more time for some retailers to update terminals.

Philip Robinson, personal current accounts, payments and fraud and financial crime director at the banks, said: “When the contactless limit increases, our customers will be able to use new tools in our mobile app to switch contactless on and off and also set their own transaction limit.

“We’ve listened to customer feedback to introduce this option which will allow them to make the most of the £100 limit in a way that works for them.”

David Postings, chief executive of trade body UK Finance, 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.”

Chancellor Rishi Sunak said: “Increasing the contactless limit will make it easier than ever to pay safely and securely, whether that’s at the local shops, or your favourite pub and restaurant.

“As people get back to the high street, millions of payments will made be simpler, providing a welcome boost for retailers and shoppers.”

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