Millions of UK bank account holders are being advised to urgently review their security settings ahead of a major overhaul of payment rules next year.
The End of the £100 Contactless Cap
From March 2026, the existing £100 ceiling on contactless card payments will be completely scrapped. This significant change, part of an extension to contactless transactions, will allow shoppers to either set their own personal spending threshold or have no limits at all when tapping their card, without needing to enter a PIN.
While this promises greater convenience for everyday purchases, financial experts are warning it also introduces new risks that require immediate consumer attention.
Balancing Convenience with Security
Nicola Morgan, a financial services specialist at comparison website confused.com, highlighted the need for vigilance. "For many, contactless has become the simplest way to pay, and giving banks and customers more flexibility could make purchases quicker," she said. "But it's important to balance convenience with security."
Ms Morgan offered several crucial tips for keeping transactions secure, especially for those opting for a high or unlimited threshold:
- Use a mobile wallet: "Paying with your phone often includes biometric security like fingerprint or face ID, adding an extra layer of protection," she advised. Research from confused.com shows over one in three (35%) UK adults already use Apple Pay or Google Pay for daily spending.
- Understand your bank's fraud policy: Check what unauthorised transactions are covered and how quickly refunds are issued.
- Know how to switch contactless off: Most banks allow you to disable the function entirely if preferred.
- Monitor your account regularly: Make a habit of checking transactions, especially after shopping, to spot anything unusual quickly.
Risks of Overspending and Fraud
Another concern is the potential for accidental overspending. Brean Horne, a personal finance expert at Investing Insiders, warned: "A higher contactless card payment limit could encourage customers to overspend and make impulse purchases."
To combat this, she recommends using budgeting apps and planning purchases ahead of time to focus on essentials.
On security, Ms Horne stressed that a higher limit could mean greater losses if a card is stolen. She urged consumers to:
- Enable spending notifications on their smartphone for instant alerts.
- Monitor bank statements regularly for fraudulent payments.
- Act fast if fraud is suspected: freeze the card immediately and contact the payment provider to investigate.
With these sweeping changes on the horizon, taking proactive steps to manage both spending and security has never been more critical for UK consumers.
