Contactless payment card limit raised
UK credit or debit cardholders can now spend up to £15 without offering a Pin number or a signature after the payment limit was raised for contactless cards.
A request by Visa and Mastercard to raise the limit from £10 was agreed by banks and other card providers.
An estimated one in seven UK residents will have a contactless card by the end of the year, allowing them to put it close to a sensor to pay for items.
The new threshold brings the UK closer in line with European limits.
In the eurozone, contactless cards can be used for total purchases of up to 25 euros (£22.60).
Contactless technology allows cardholders to press their debit card to a sensor in more than 8,000 UK shops to register a payment.
The money is automatically deducted from their bank account or added to their credit card bill.
In East Asia the chip found in a plastic card is placed in an everyday item such as a mobile phone or a watch. This is then pushed against a sensor in a shop to pay.
The UK has been relatively slow to take up the technology, partly owing to security concerns, but plans to phase out cheques by 2018 could put more focus on the service.
Occasionally, cardholders are asked to enter their Pin, as they are for purchases above £15. No cash-back is available.
The card provider covers any losses if a card is stolen and the customer reports the loss at the earliest opportunity and does not act negligently.
Source: BBC News
