How to avoid contactless card fraud in 2022 (2024)

Britons spend billions of pounds each year using contactless bank cards, but after the spending limit was increased to £100, many users have concerns about their security.

Contactless technology was introduced as a simple way to make quick, small purchases like a sandwich or a round of drinks. However, the latest limit is ten times more than the initial cap of £10, which was set when contactless payments began in 2007.

The technology allows for payments to be made with a simple tap, without any further checks such as a signature or Pin.

But it also makes it easier for thieves to use the card if it is lost or stolen, especially if a victim has not yet noticed and told their bank.

When did the contactless payment limit increase?

The limit was increased to £20 in 2012, to £30 in 2015 and then to £45 in 2020, in response to the Covid-19 pandemic. The most recent increase saw the spending limit set at £100, which came into play on October 15 2021. This large spending cap sparked fears of increased fraud attacks on cardholders.

Andrew Cregan, the British Retail Consortium's payments policy adviser, said at the time: “Some retailers may choose not to adopt the new contactless limit. As a result, customers will need to take care when making payments to check what the maximum contactless limit is for individual stores."

Reporting contactless card fraud

The £100 limit means British consumers are among the biggest spenders without having to confirm their identity. Japan’s ¥20,000 limit currently tops the UK’s ceiling by about £30. In America, there is no central limit, but banks can set their own caps.

Critics have wondered who would demand this higher limit, since Pin entry only takes slightly longer. But banks point to the fraud guarantees that are available and the fact that cash, when stolen, is even less secure.

According to the most recent Payment Services Regulations, the rules which govern payment systems in Britain, banks must refund unauthorised payments, unless their customers have broken the rules or been “grossly negligent”.

In other words, as long as you report the loss or theft of your card as soon as you notice it, you should be covered by your bank.

Cards ought to force a Pin check every five transactions or £300, whichever is triggered first, as another security measure.

Avoiding contactless card scams

There are ways to protect yourself and avoid having to test your bank’s largesse. Contactless cards contain an antenna to allow the payments system to identify the card and carry out the transaction.

If you are worried about devices reading your card and cloning it, line your wallet or purse with tin foil. This blocks the radio signal needed for the card to communicate. If you are going on holiday or worried about pickpockets try to not carry too many contactless cards at once.

Do not allow your card out of your sight for payment. Most terminals are now wireless and your card never needs to leave your hand unless the Pin is needed.

Politely remind anyone taking a payment that if a terminal is faulty then they can go and swap it without also taking your card.

It is also socially acceptable to insist on seeing the amount being billed and to request a receipt.

Check your bank statements weekly to check for unusual payments. If you do not recognise a payee, search the name online as some vendors use their company name rather than a brand name. If anything looks suspicious, ring your bank or card provider.

Can you lower the limit of your contactless card?

There are banks who are offering customers the option to set a lower limit. Starling is allowing its customers to decrease the contactless limit to as little as £10.

Customers who bank with Lloyds, Halifax and Bank of Scotland are also able to set their own contactless limits. Ranging between £30 and £95, customers can also turn off their contactless functionality whenever they choose.

Nationwide Building Society doesn't currently have the ability to let its customers choose a lower contactless limit, however it is planning on introducing this in the future.

Although Barclays customers also cannot set their own contactless limits, they can set spending limits across all of their transactions - including the contactless ones.

How to disable your contactless cards

Many banks - including NatWest, Santander, Barclays and Virgin Money - allow customers to switch off contactless transactions entirely through settings in online banking or the smartphone app.

However, this functionality is not available for all, with HSBC, MBNA, Capital One and American Express customers stuck with the higher limit.

If you still feel uncomfortable having contactless functionality, you can ask your bank for an old-fashioned card, which will have chip and pin but no contactless support. Bear in mind you may be barred from using mobile payment systems on planes and trains by doing this, as they can rely on this contactless technology.

You can then still make use of the speed of contactless payments with more security by using your mobile phone. Google, Apple and Samsung offer payment systems which are contactless, but which can require you to access your phone with a fingerprint.

If you do end up losing money through theft, contact your bank. If they do not help, make a formal complaint. If that fails, contact the Financial Ombudsman Service, the banking complaints body, within six months of your bank’s final decision.

This article is kept updated with the latest information.

Have you been a victim of contactless card fraud? Share your experience in the comments section below