Contactless card limit rises in UK despite security concerns

The UK is embracing tap-to-pay cards, despite some troubling findings on contactless card technology

BRITONS can now spend MORE money with their contactless cards and tap-to-pay smartphone solutions despite some troubling security findings.

 

British shoppers can now make higher-value purchases with their contactless cards limit.

The limit on the tap-and-pay cards, which was previously set at £20, has today increased to £30.

Although the increase is being rolled out across the UK today – not all retailers will offer the new limit from day one.

A number of software updates will need to be made to payment terminals in order to allow them to accept the new limit.

Contactless cards are becoming increasing popular in the UK, with more than 58 million compatible cards currently in circulation, but there are some security concerns.

A recent investigation by consumer group Which? claimed the cards did not secure personal information, making it easy to steal card details remotely.

Which? used "easily and cheaply" acquired technology from a mainstream website to take enough information from cards to place orders for items including a £3,000 television set.

Contactless payments were first introduced in the UK back in 2007 as a fast way to pay for lower cost items.

The tap-to-pay solution has become hugely successful and there are now more than 58 million contactless cards in the UK. 

According to trade body the UK Cards Association, more contactless transactions took place during the first nine months of 2014 than the previous six years combined.

The technology enables customers to pay for goods with a single swipe of their card on a reader, without the need to sign or enter a personal identification number, or PIN.

 

Apple believes its the fingerprint sensor in its Apple Pay system is MORE secure than contactless

The range of places where contactless payments are accepted includes Aldi, Barnardo's, Greggs, McDonald's, M6 Toll, London Buses, London Tubes and the Post Office.

Richard Koch, head of policy at the UK Cards Association, said: "Contactless payments are fast, easy and secure and use the same robust encryption technology as chip and PIN.

Contactless payments are fast, easy and secure and use the same robust encryption technology as chip and PIN

Richard Koch, head of policy at the UK Cards Association 

"Consumers are increasingly choosing contactless as a way to pay and the new £30 limit will give shoppers and retailers even more opportunities."

The latest increase to the limit is the third to have taken place. 

The last increase to the contactless limit was made in June 2012, when £5 was added, taking the limit to £20. Before that, it was raised from £10 to £15 in 2010.

Apple recently launched its own contactless payment solution, Apple Pay.

The tap-to-pay system allows customers to securely pay with a credit or debit card by tapping their iPhone or Apple Watch against the terminal.