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Concerns that higher contactless card limits could unwittingly “give a green light” to domestic abusers to drain victims’ bank accounts have been raised by a charity.
The contactless card limit for a single payment currently stands at £100 – but the Financial Conduct Authority (FCA) has said it wants to give card providers the flexibility to decide the right limit for them and their customers.
It is consulting on changes that could see limits exceed £100.
However, the regulator also said that, based on industry feedback, it anticipates that most firms would continue to implement the £100 limit for the time being.
Sam Smethers, chief executive of Surviving Economic Abuse, argued that abusers could end up with “free access to drain a survivor’s bank account”.
She said: “This could leave a survivor without the money they need to flee and reach safety, while pushing them even further into debt.
“This move highlights the urgent need for financial services to adopt a consistent, industry-wide approach to coerced debt – one that reflects and recognises victim-survivors’ experiences. Survivors should not be left to pay the cost of an abuser’s crime.
“Raising contactless limits also marks another step towards a cashless society. For survivors, cash is not just a means of payment – it’s a lifeline.
“Abusers can monitor online transactions, withhold bank cards and close down bank accounts, whereas cash could be a survivor’s only way of escaping harm or even putting food on the table.”
The regulator’s proposals are out for consultation until October 15.
A spokesperson for finance and banking industry body UK Finance said: “We recognise the serious and lasting impact of economic abuse and are committed to supporting victim-survivors through tailored help and specialist teams.
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“While the FCA’s proposal gives firms greater flexibility, we do not expect any immediate changes to the current £100 contactless limit. Any adjustments are more likely to affect background settings, such as how often a Pin is required, not the removal of limits altogether.
“The industry remains focused on protecting all customers and will continue to hold robust fraud controls in place to detect and respond to unusual activity.
“While contactless payments offer a convenient and flexible way to pay, they do not replace cash, which continues to be available and supported by the industry across the UK.”
