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Starling sees little demand for rise in contactless limit

Starling Bank is to let customers set their own contactless limit, noting little demand and a fair degree of concern over the raising of the contactless ceiling to £100 later this week.

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Starling sees little demand for rise in contactless limit

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The upcoming hike in the contactless spending limit on consumer debit cards has raised fears that they could become a target for fraudsters, who can escape unchecked for at least five transactions up to a maximum of £300 when tapping to pay at high street retailers.

CEO Anne Boden says: “The benefit of being a digital bank is the ability to listen to customers and implement wanted changes quickly. Analysing our spending data we can see that there appears to be little demand for the increased contactless limit and that many would like to retain the same contactless limit or even reduce it.”

Starling Bank follows Lloyds Bank in giving customers more control over contactless spending, enabling users to set a lower limit from within its banking app. The limit can be decreased from £100 in increments of £10, right down to zero, which will turn off contactless payments completely.

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Comments: (2)

Brian Richardson

Brian Richardson CEO at WIZZIT

This is very interesting and supports what we have found with our TapOnPhone product that has been launched around the world. In a poll conducted on LinkedIn not 1 person -  0% of respondents indicated that they did not want PIN. 95% said that they would like the abiility to set their own limit as to when PIN was required and 5% said they wanted PIN on every transactions - irresepective of value

Joe McIntosh

Joe McIntosh Regional Manager - Business Solutions at PAYMENTS MATTER

I believe there really no need for a £100.00 contactless limit. This could cause considerable hardship for consumers who just tap ( without looking at the amount on the screen ) as they are in a rush. As a payment specialise I always look at the screen and have noticed on a few occasions ( with scanned items ) the figure is higher than it should be, but how many individuals actually do this?. If lost or stolen Cards are found before the owners banks are informed, this will leave them out of pocket. it's great for the retailers but not as good for the consumers. I applaud Lloyds and Starling in taking the first step and offer their customer a choice and believe all responsible banks should do the decent thing and do the same. Our consumers need to be better educated on the possible damages and given the options of protect themselves and their funds by getting a lower limit.

 

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