With the contactless payment limit set to rise again, how can your business adapt to the change, and how secure is contactless. Here’s a quick guide to the new contactless limit.
What is the new contactless payment limit?
The UK contactless payment limit will increase to £100 from 15th October 2021. HM Treasury and the Financial Conduct Authority took the decision to increase the contactless limit following discussions with retail and banking stakeholders, and a public consultation.
Currently, the contactless limit is £45, which
increased from £30 in April 2020 at the start of the COVID-19 pandemic. For retailers to accept £100 payments
they will need to make sure their card machine is enabled for the new payment limit – later in this guide, we will cover how the payment limit will work specifically in relation to Tyl’s card terminals (fees and eligibility criteria apply).
How secure are contactless payments?
While no one has a crystal ball, there is evidence to suggest that contactless technology may be safer than some might assume. According to UK Finance’s report, ‘Fraud – The Facts 2021 (PDF) ’, fraud on contactless payment cards and devices “remains low”. In fact, the report states that contactless fraud accounts for just 1.8p in every £100 spent using contactless cards.
Contactless cards have been used in the UK for a while now – since 2007 – and work using near-field communication (NFC) technology, which enables a short-range digital transfer of information from a card or payment device to a card terminal, NFC is often considered to be safer than previous solutions like magnetic stripe payments, as the cardholder’s unique digital signature is contained within the chip.
has been enforced in the UK since September 15th 2021, and means customers may be required to provide two forms of identification when they make a purchase.
Also, contactless cardholders are sometimes asked to type their PIN to prove they are legitimately in possession of the card. This request may be made based on the number, or value, of transactions with this another layer of protection which helps to further reduce the likelihood of fraud.
Moreover, other contactless payment solutions such as Apple Pay and Samsung Pay often require face authentication for a payment.
Our guide on protecting your business against fraud covers some of the ways your business can stay one step ahead of the fraudsters.
Does the contactless payment increase affect mobile payments ?
In theory, there is no payment limit for mobile wallets such as Apple Pay, Google Pay and Samsung Pay, so mobile payment users can continue to make limitless payments regardless of the contactless payment limit increase.
Do I need to increase the payment limit on my Tyl card machine?
If you are a Tyl customer with one of our card machines, the increased payment limit of £100 will be rolled out automatically so you won’t need to do anything to enable this change. All Tyl POS terminals (such as the Clover Flex , Ingenico Desk and Ingenico Move 3500) will be compatible with the new limit, with Ingenico merchant terminals updated on Tuesday 19th October and Clover merchant terminals being updated later in October, but we will be in touch to confirm a specific date. We will send you a text shortly to confirm when your terminal(s) will be automatically updated and if you need to follow any further instructions.
More from Tyl Talks
Once you’ve got your head around the dizzy heights of the new contactless payment limit, there are plenty of other Tyl Talks guides to 'tap in' to. Check out some of our latest efforts over at Tyl Talks.
- What is Strong Customer Authentication (SCA)?
- Protecting your business against fraud
- What is NFC technology?
- What is a contactless payment?
This has been prepared by Tyl by NatWest for informational purposes only and should not be treated as advice or a recommendation. There may be other considerations relevant to you and your business so you should undertake your own independent research.
Tyl by NatWest makes no representation, warranty, undertaking or assurance (express or implied) with respect to the adequacy, accuracy, completeness, or reasonableness of the information provided.
Tyl by NatWest accepts no liability for any direct, indirect, or consequential losses (in contract, tort or otherwise) arising from the use of the information contained herein. However, this shall not restrict, exclude, or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.