[Finance] Contactless Card Limit Could Be Scrapped

[studio150]

The FCA are considering scrapping the contactless card limit as it would benefit consumers, merchants and increase economic growth.

Is it just me that thinks the only people to benefit from this proposal are fraudsters, or are you happy to just tap your card to pay £1,000 or more.

 

[Invicta]

A fraudsters dream, every stolen card gets smashed for several hundred / thousands of pounds more before reported and cancelled.

 

[Withdean South Stand]

I have a little bit of insight into this world and I can tell you that one of the main reasons for the low limit initially was to ensure the Card providers were able to really control the flow of transactions and prevent charges which are likely or potentially fraudulent from being approved. The models are really sophisticated now, based on all the data they've been fed since Contactless transactions began. If there's a whiff that the transaction is dodgy, it will be flagged for potential Fraud concerns and either reverted to Chip & PIN authentication or outright declined.

You might be surprised at how much logic is built into every attempted transaction and the decision to approve, decline or require further authentication is made and how quickly all of that logic is applied to a transaction in the instant it is being made.

A fraudsters dream, every stolen card gets smashed for several hundred / thousands of pounds more before reported and cancelled.

That isn't actually the reality of the situation at all. In some cases yes, the transactions are allowed to go for longer than the Card issuer would have liked and the Fraudster wins (which always stings). But the Consumer doesn't lose out, the transactions are refunded and the Fraud prevention model learns the behaviour which led to the loss.

For example, if you attempt several Contactless transactions in a short period of time you're going to very quickly be declined. If you're stood in Tesco at a checkout with a basketful of items and you're attempting to transact a few at a time, you're going to be quickly declined. Maybe the best advice is to not be greedy and you'll be fine!

 

[schmunk]

There's already no limit on Google Pay / Apple Pay (etc.) contactless transactions.



There are some additional safety features available however, e.g. needing to unlock your device to transact; virtual card numbers; 2FA.

 

[Westdene Seagull]

There's already no limit on Google Pay / Apple Pay (etc.) contactless transactions.



There are some additional safety features available however, e.g. needing to unlock your device to transact; virtual card numbers; 2FA.

^^^ This. Also, if you don't wanted an unlimited amount for tapping you can set your own limit in your banking app.

 

[GT49er]

Can't see the point really, but if people want them, so be it - as long as a non-contactless card version is always available on request.

 

[Joey Jo Jo Jr. Shabadoo]

I have a little bit of insight into this world and I can tell you that one of the main reasons for the low limit initially was to ensure the Card providers were able to really control the flow of transactions and prevent charges which are likely or potentially fraudulent from being approved. The models are really sophisticated now, based on all the data they've been fed since Contactless transactions began. If there's a whiff that the transaction is dodgy, it will be flagged for potential Fraud concerns and either reverted to Chip & PIN authentication or outright declined.

You might be surprised at how much logic is built into every attempted transaction and the decision to approve, decline or require further authentication is made and how quickly all of that logic is applied to a transaction in the instant it is being made.


That isn't actually the reality of the situation at all. In some cases yes, the transactions are allowed to go for longer than the Card issuer would have liked and the Fraudster wins (which always stings). But the Consumer doesn't lose out, the transactions are refunded and the Fraud prevention model learns the behaviour which led to the loss.

For example, if you attempt several Contactless transactions in a short period of time you're going to very quickly be declined. If you're stood in Tesco at a checkout with a basketful of items and you're attempting to transact a few at a time, you're going to be quickly declined. Maybe the best advice is to not be greedy and you'll be fine!

Although not contactless when I’ve purchased FA Cup tickets I’ve had to log in to my mobile banking account and approve some of the payments to prove they aren’t fraudulent.

This is because I’m buying mine, my two boys and my Dads as separate transactions as the club website makes you login to each individual account to secure your season ticket seat. The bank then see multiple payments suddenly to the same retailer and flag it as needing extra checks. Similar to the checks in place if someone suddenly starts spamming multiple contactless payments through a card.

 

[PascalGroß Tips]

I hardly ever make contactless card payments these days. I use Apple Pay - which generally has no upper limit due to the additional security of biometric data (although retailers sometimes set their own transaction limit).

Back in the late 70s I worked for Nat West Bank. They offered customers two different types of cards to allow you to make withdrawals from a cash machine. If you were lucky, you got a card that works the same as today's debit cards with the cash machine returning the card to you. Some customers were only issued with a basic card that allowed you to withdraw just £10 ... AND ... the machine kept the card and it went through the bank clearing process (like a cheque). The card would take 3 days to get back to your local branch which then had to post the card back out for your next withdrawal. How times have changed ...

 

[thedonkeycentrehalf]

I would hope that banks will allow you to set your own limit. Personally, I am quite happy to keep a lower limit as it reduces any risk if my cards were stolen/lost and it really isn't an inconvenience to put in a PIN when I do spend more.

 

[PascalGroß Tips]

Can't see the point really, but if people want them, so be it - as long as a non-contactless card version is always available on request.

Both banks I have a debit card for allow you to toggle off the contactless function in the banking app. I expect it's the same with most banks.

 

[PascalGroß Tips]

I would hope that banks will allow you to set your own limit. Personally, I am quite happy to keep a lower limit as it reduces any risk if my cards were stolen/lost and it really isn't an inconvenience to put in a PIN when I do spend more.

I've just had a look at my two banks. One only gives you the option of having contactless or not - so you can't actually change the amount. The other allows you to request your own limit via the chat function.

 

[GT49er]

Both banks I have a debit card for allow you to toggle off the contactless function in the banking app. I expect it's the same with most banks.

I've just had a look at my two banks. One only gives you the option of having contactless or not - so you can't actually change the amount. The other allows you to request your own limit via the chat function.

I had to ask my bank to send me a non-contactless card, which they did. My credit card company (Master Card) said no, they only do contactless cards, so I disabled it and only use it now for on-line transactions.

 

[Skuller]

I recently stupidly left my card in a ticket machine in Cologne railway station. I realised about two hours later. By then about ten transactions had gone through for about £150 at local shops but the algorithm had spotted something weird and started to decline payments before I’d frozen the card and reported it missing. A quick phone call resulted in everything being returned. The only worrying thing was the comment from the card issuer “We see you’ve never reported anything like this before” which makes me wonder how amenable they’ll be if I’m equally dumb in the future.

 

[Cotton Socks]

I resisted having a contactless card for ages but now quite like it I've even loaded it onto my phone. That's just my debit card. I have 2 other credit cards which I rarely use. Twice in the last year I've had to have one changed as they've somehow got hold of the details.
Weirdly I keep all my cards together, the one that has to be changed is not on my phone, not stored on any websites but they have somehow got the details & load it to their phones & try & buy a coffee or register for Door Dash. That's not my main bank that I have a debit & credit card with, it took this bank about 3 months to tell me they were blocking small payments but let me make a large payment with the text verification.
It's a right bloody hassle & I can't work out how they've got the details.
So no I don't want the limit raised to £1000 I'm paranoid enough about it being £100. I can't remember the last time my debit card wanted a pin.

 

[Invicta]

I have a little bit of insight into this world and I can tell you that one of the main reasons for the low limit initially was to ensure the Card providers were able to really control the flow of transactions and prevent charges which are likely or potentially fraudulent from being approved. The models are really sophisticated now, based on all the data they've been fed since Contactless transactions began. If there's a whiff that the transaction is dodgy, it will be flagged for potential Fraud concerns and either reverted to Chip & PIN authentication or outright declined.

You might be surprised at how much logic is built into every attempted transaction and the decision to approve, decline or require further authentication is made and how quickly all of that logic is applied to a transaction in the instant it is being made.


That isn't actually the reality of the situation at all. In some cases yes, the transactions are allowed to go for longer than the Card issuer would have liked and the Fraudster wins (which always stings). But the Consumer doesn't lose out, the transactions are refunded and the Fraud prevention model learns the behaviour which led to the loss.

For example, if you attempt several Contactless transactions in a short period of time you're going to very quickly be declined. If you're stood in Tesco at a checkout with a basketful of items and you're attempting to transact a few at a time, you're going to be quickly declined. Maybe the best advice is to not be greedy and you'll be fine!

Still good for a fraudster though, it must increase their take per card. The key as you say is not to be too greedy and try and buy something too expensive. Whilst Banks generally take the loss it grinds to know crime pays that little bit more.

 

[birthofanorange]

I would hope that banks will allow you to set your own limit. Personally, I am quite happy to keep a lower limit as it reduces any risk if my cards were stolen/lost and it really isn't an inconvenience to put in a PIN when I do spend more.

100% this.

 

[Hovegull]

I only ever use Apple Pay - I still carry the plastic around just in case tho

 

[Audax]

I only ever use Apple Pay - I still carry the plastic around just in case tho

Similar here, except I'm Android not Apple. I actually have no idea what the PIN is for the card I use most, which might be embarrassing at some point... (must remember to refresh my memory before my next overseas holiday).

 

[LamieRobertson]

Current limit is sufficient for 99.9% of times I need to flash the card at a machine, so this move means nothing to moi

 

[banjo]

You can’t beat good old bangers.