By Karl Matchett

Copyright independent

One expert has detailed how binning the contactless pay cap is intended to help us spend more, and more quickly… to help the economy of course.

Whether that’s something consumers actually want – or whether they even think about if they were spending £101 rather than £99 – is up for debate.

But the reminder is there that in fraudulent cases it’s the merchants on the line, not the card owner, so the onus is still on them to check if it’s a big payment or an unusual purchase.

“UK retailers may be hopeful that a further spending boost could come from an expected relaxation of contactless card payment limits,” said Susannah Streeter, head of money at Hargreaves Lansdown.

“The Financial Conduct Authority is proposing to scrap the £100 cap for potentially unlimited transactions, although these would still be set by banks and other providers.

“This is part of a red tape bonfire to try and reduce financial regulation and speed up growth. The idea is that it will be more efficient for retailers and customers alike and will make it easier for consumers to spend more, more quickly.

“This would bring the process more into line with mobile wallets, which can used already for higher-value transactions. There is the potential for increased fraud, but consumers will still have their money protected in the same way, when flagged to a bank.

“It’s the merchants who ultimately pay the price for fraudulent transactions, via the Chargeback process. So, investment in more advanced detection and prevention methods will be even more crucial, including real time monitoring and behavioural analytics to mitigate risks.

“These are investments larger retailers will be better placed to make, but small retailers are likely to be more reluctant to wave through big payments, without extra checks.’”