Shoppers across the UK will now be able to pay up to £100 using contactless card payment services from today.
At the start of the COVID-19 pandemic, the payment cap was increased to £45 to help reduce the need for customers to handle cards and cash due to concerns about the virus being transmitted via surfaces.
But today’s payment limit increase to £100, announced last week, is the most significant yet.
The latest increase, which was initially announced in March’s budget, will not be available everywhere straight away however, as some businesses and retailers still need to roll out changes to their technology, while others may choose not to adopt the new limit at all.
The British Retail Consortium said consumers should check with individual stores, as it could take “days, weeks or even months” for the change to be put in place.
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Here’s everything we know so far.
Why is the limit increasing?
As mentioned, the decision to increase the limit was taken by the Treasury and the City regulator, the Financial Conduct Authority (FCA), and was announced last week, but Chancellor Rishi Sunak first teased it during his 2021 Budget back in March.
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Mr Sunak said the decision to increase the limit to £100 would not only be more convenient for shoppers, but it would also be a boost to the High Street following several lockdowns.
When contactless card payments were introduced in 2007, the transaction limit was set at £10 and designed as an alternative to small change – but the limit has been gradually raised five times over a number of years since then.
It increased to £45 last year, as the pandemic accelerated a move away from cash.
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The increase also comes after it was found that more than a quarter of all payments in the UK were contactless in 2020, according to figures from the banking trade body UK Finance, with 83% of people using the technology.
A Financial Conduct Authority spokesperson said the rules have been changed to help the industry continue “to respond to the changing ways in which people prefer to pay”.
Shoppers across the UK will now be able to pay up to £100 using contactless card payment services from today / Credit: Flickr
Why can’t it be used in all retailers just yet?
The short answer is that not every shop is ready to facilitate the new limit from today,
Due to the huge number of terminals which need to be updated, this means that Friday marks the first day of a gradual introduction of the new limit, with the Andrew Cregan – Payments Policy Adviser at the British Retail Consortium – admitting: “It may take days, weeks, or even months for some retailers to make the necessary changes in their systems so that the new limit can take effect.”
“Some retailers may [also] choose not to adopt the new contactless limit,” he added.
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“As a result, customers will need to take care when making payments to check what the maximum contactless limit is for individual stores.”
The increase also comes after it was found that more than a quarter of all payments in the UK were contactless in 2020 / Credit: Wikimedia Commons
What are the risks?
A number of experts and organisations have spoken out to make shoppers aware of the risks as the limit increases to £100, warning that the change will make contactless cards more of a target for fraudsters, or cause problems for people who are struggling to stay in control of their spending.
Age UK has also warned that because the raising of the limit could increase the potential for fraud, it may therefore put some older people off using bank cards to pay for goods and services when they’re out and about.
Because of this, several banks across the UK have said they will also allow account holders to set a contactless limit of less than £100, or even turn it off altogether.
Gareth Shaw – Head of Which? Money – added: “While paying with contactless offers great flexibility and convenience for many people, some may be wary about the significant increase – so it is encouraging to see some banks allowing customers to set their own contactless limits from as low as £30.
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“These changes may make contactless cards slightly more attractive for fraudsters, but encouragingly the risk of being defrauded via a contactless card remains low and if a fraudster does use your card details then your card provider should reimburse you.
“Consumers should be able to feel confident using them.”
Featured Image – Flickr
News
Huge shuttle bus effort laid on to get Manchester United fans to Old Trafford amid tram disruption
Daisy Jackson
Transport for Greater Manchester has announced a shuttle bus scheme to help Manchester United fans get to Old Trafford this week, amid major tram disruption.
Fans won’t be able to use trams to get to the ground as usual, due to huge improvement works which are in place until Monday 2 November.
There’ll be no trams at all on the Altrincham, Trafford Park, and Eccles lines, with Airport and East Didsbury trams only going as far as Firswood.
That means that fans heading to Manchester United’s home game against Bournemouth would have been a little stuck without this newly-announced shuttle bus service.
Frequent dedicated shuttle buses will run running Piccadilly Gardens, Altrincham Interchange and the Trafford Centre, taking fans directly to Old Trafford before the game.
Frequencies range from five to 20 minutes depending on the route and time, with details available online. Return services will be in place after the final whistle.
TfGM staff will be at key stops and interchanges throughout the day to help fans get to the match and provide travel advice.
Huge shuttle bus effort laid on to get Manchester United fans to Old Trafford amid tram disruption. Credit: TfGM
Ian Davies, TfGM’s Network Director for Metrolink, said: “There is no good time to disrupt passengers to carry out these works, and this is the first time in over a decade that trams won’t serve Old Trafford on a match day, but these works are essential and will enable us to provide a better service in future. I am very sorry to fans who face disruption.
“We’ve put a range of alternative travel options in place, including dedicated shuttle buses, bolstered Bee Network bus services, rail options and ticket acceptance arrangements will help fans get to and from the game.
“Journey options will be different from usual, so we would encourage supporters to plan ahead, check their route and our website before they travel and leave plenty of time to get to and from the stadium.”
TfGM is advising supporters to leave around an hour earlier to help make sure they arrive in time for kick-off.
Andy Burnham introduces new rules to tackle ‘rip-off’ parking charges
Daisy Jackson
City centre parking is at a premium, especially in a city like Manchester – but we’ve surely all made honest mistakes when paying and been slapped with eye-watering fines as a result.
Well now, Andy Burnham has announced a new Private Parking Code of Practice, which will clamp down on ‘rip-off’ private parking charges.
It will also make it easier for drivers to challenge unfair charges, capping charges for ‘smaller slip-ups’ at £20, and scrapping charges altogether on appeal for ‘honest mistakes’.
The new Code will get drivers a guaranteed five minutes to decide whether to park and 10 minutes to leave once their session ends.
Under the new Private Parking Code of Practice laid in Parliament today, you’ll be able to appeal to have all charges scrapped for honest mistakes like stopping briefly to check directions, and for situations like a medical emergency, breakdown or broken ticket machine.
Then charges will be capped at £20 for other mistakes such as forgetting a parking permit, entering the wrong vehicle’s registration or forgetting to confirm it in the machine when parking.
The Code also freezes the maximum parking charge at £100. Operators who don’t comply risk losing access to DVLA data, meaning that even if they issue a charge, it will be far more difficult to identify the registered owner to pursue payment.
Data shows just under 17 million private parking charges were issued in the UK last year alone.
Prime Minister Andy Burnham said: “Being a few minutes late back to your car or typing one digit of your numberplate wrong shouldn’t end with a hefty fine landing on your doormat.
“These charges leave people feeling ripped off and out of pocket, so I’m putting a stop to them.
Andy Burnham introduces new rules to tackle ‘rip-off’ parking charges. Credit: Unsplash, Samuel Isaacs
“We are introducing clearer rules, longer grace periods and lower charges for genuine mistakes, while going after the deliberate scams that rip drivers off.”
Secretary of State for Housing, Communities and Local Government Angela Rayner said: “Parking should be straightforward, not another everyday hassle. These changes mean drivers get a fairer deal, protected time to park and leave without fear of being unfairly charged, and confidence that private parking providers are held to a higher standard.
“It’s yet another step forward in this government’s plan to take the stress out of everyday life and ease the pressure on people’s pockets.”
Minister for Consumer Action, Kate Dearden, said: “Nobody works hard for their money just to be deceived by a dodgy trader, and this is exactly the kind of everyday rip-off this government is going after.
“By making it easier to take action against car clocking, we are protecting consumers’ hard-earned money and supporting businesses that play by the rules.”
The Manc -
15th October 2021 
