Crime warning over increase in contactless spending limit to £100

From October 15 the spending limit on each use of a contactless card is to more than double from its current level of £45, banks have announced.

The maximum spend had been increased from £30 to its current level at the start of the pandemic amid fears that Covid could be spread through surfaces, while plans to raise it further were announced in March's Budget.

Ministers insist the new transaction limit will allow people to pay for things such as their weekly shopping more easily, which would provide a boost for retailers as people return to the high street.

But MPs and finance experts have warned it could lead to a spike in crime.

Wolverhampton South East MP Pat McFadden, the Shadow City Minister, is among those to question the move. He said: "This might increase convenience but it also increases the security challenge.

"How will consumers be protected if cards stolen?"

A report by the UCL Jill Dando Institute of Security and Crime Science earlier this year warned that raising the contactless limit was "likely to generate crime to acquire debit and credit cards".

It said: "Raising the contactless card limit to £100 would likely make card theft more attractive, increasing a broad range of acquisitive crimes including snatch theft of wallets and purses, hold-up robberies, and home and vehicle break-ins to find cards that can be used fraudulently.

"If the increased limits continue beyond the pandemic not only is it probable that crime rates will increase in the short-term, but also past experience suggests it could attract new cohorts of teen criminals who are more likely to progress to extended criminal careers, with implications for longer term crime rates in England and Wales."

The report added that banks and retailers were likely to welcome the changes as they "experience any economic benefit but bear little or none of the crime cost".

Chancellor Rishi Sunak said: "Increasing the contactless limit will make it easier than ever to pay safely and securely – whether that’s at the local shops or your favourite pub and restaurant.

"As people get back to the high street, millions of payments will made be simpler, providing a welcome boost for retailers and shoppers."

Contactless card payments were first introduced in 2007 with a limit of £10.

It was increased to £20 in 2012, then to £30 in 2015.

The pandemic accelerated a move away from cash, with shoppers encouraged to use contactless in many stores to reduce close contact between staff and customers.

Some stores stopped accepting cash altogether, a move that has been viewed by some as a major indicator of a shift towards a cashless society.

Experts have warned that half of Britain’s cash machines could close within two years unless banks are forced to support them, meaning around half of the current stock of 41,000 free network could be shut.

Consumer group Which? estimates that since the start of 2020, 3,300 cash machines have closed down.

Meanwhile the Post Office has announced it is to close a third of its cash machines – 600 ATMs – by March 2022.