Every UK Tesco, Sainsbury’s, Aldi and Lidl on brink of major change at checkouts | Personal Finance | Finance

A major change will take place at supermarket checkouts which could impact shoppers. The current £100 spending limit shapes daily purchases, but the rules could soon change. It comes as the Financial Conduct Authority (FCA) closes a consultation that could lead to the removal of the current contactless cap. The move would impact customers at Tesco, Sainsbury’s, Asda, Morrisons and other major supermarkets and retailers across the UK. 

With food inflation soaring and the cost of supermarket shops going up, regulators are considering scrapping the limit and letting banks and payment providers set their own. This would impact millions of transactions a day and could make paying quicker and more convenient if it gets approved.

Contactless payments were first introduced in 2007 with a cap of £10. The limit gradually increased until 2021 when the £100 limit came in.

A consultation was held, which discussed modernising the UK’s payment systems.

This came after a letter sent to the Prime Minister, Sir Kier Starmer, by FCA chief executive Nikhil Rathi outlined steps to support innovation in financial services.

Removing the limit will offer greater flexibility for customers and retailers, says Mr Rathi.

In the USA, there are no limits, so making this change could bring the UK into line with other countries. 

If a contactless card is lost or stolen and used fraudulently, banks will still be required to refund the customer under current legislation.

Despite the benefits the new system would offer, there are also concerns about fraud levels.

Having a contactless limit does have its benefits in terms of fraud prevention.

A decision is expected later this year when the FCA will confirm whether the limit will be removed or raised.

At the moment, a £100 limit still applies but changes could be coming soon so shoppers should keep an eye out for updates.