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The bank has increased the limit for contactless payments to £100. Although there are obvious advantages, I started to see the disadvantages of this payment method. Is contactless really as good as people say?
Is contactless payment really convenient?
There are two main reasons why contactless payment is so popular:
- This transaction saves time for shoppers and retailers.
- Contactless payment is considered “safe” because it is less likely to spread infection without touching the keyboard.
However, it may be worth looking at what we are trading for these benefits.
Whose money is it?
For middle-income or low-income people, the bank is just a place to save money.Contactless debit or credit card Emphasize the bank’s control over your financial situation, especially since contactless payments may be rejected immediately for no reason. The bank stated that with the new higher limit, we will be randomly asked to enter our PIN more frequently.
When processing contactless payments, customers and assistants stand redundantly at the checkout counter, while the company communicates remotely with the bank. Personally, if I did not participate in the authorization payment, I feel that my money does not seem to be mine.
Is now a good time to increase the contactless limit to £100?
The new limit means that £100 is not a lot—just a small change. For many people, this is not the case. In fact, for those who receive the minimum wage, it represents more than 11 hours of work.There are a lot of wearing it credit card If your debts are increasing.
During periods of high inflation, it seems nonsense to increase contactless payment limits. It conveys a message that retailers may set higher prices based on the notion that your £100 is not spent much.
Some banks will allow you to lower the contactless limit, others only offer the option to completely disable contactless. This opt-out indicates that the bank acknowledges that the new limit is problematic for certain account holders.
How will the £100 contactless payment affect the family budget?
Debit cards make it more difficult to stick to a budget. Contactless systems exacerbate these challenges, especially for families where more than one person happily waved a card at checkout.
It’s easy to make your card beep, and you don’t even need to look at the screen to know how much you spent. The question is as follows: “Do you want a receipt?” Transaction records are optional extras, which may waste paper resources and time.
Sometimes, because the payment is so fast and convenient, I forget that I bought something completely.No online banking or application, Not everyone has or wants, so it is difficult to budget effectively.
Impulsive, easy-to-forget purchases are possible for small amounts, but £100 may leave a big unexpected hole in your monthly spending plan or weaken your spending. Savings.
Conversely, for purchases over £100, how many of us will remember our PIN?
Few of us benefit from impulse buying options credit cardAs far as I am concerned, I cannot always remember my PIN as well.
Safe?
Contactless payments can protect us from infection, but can they protect us from crime?
The bank’s response to concerns about card theft was, “Oh, this doesn’t happen very often. If so, we will return the money to you”. This is not very reassuring.
Account holders are expected to remain vigilant. I think the whole point of depositing money in the bank is that it is safe. Depleting account funds due to fraud is a pressure and nuisance, even if it is only temporary.
Increasing the contactless limit to £100 can make your wallet or wallet more expensive Thief attractive targetThe cards ensure that we no longer need to travel with large amounts of cash, but now one or two contactless cards make us vulnerable again.
Will contactless payment reduce retail work?
When people are still writing checks at the counter or paying with large amounts of banknotes, if I admit to working in the retail industry, I expose my age. I even remember the heavy credit card machine with blue carbon paper.
If it is too expensive to pay someone “please enter your password”, then most cash registers will be unattended soon. Working behind the cash register may soon become a thing of the past.
Will the ceiling go up again?
In the past few years, contactless restrictions have risen several times. There is no reason to assume that it will not increase further.
If you have any concerns about the new £100 contactless limit on your card, please contact your bank or credit card company to discuss your options.
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About the author
Rosemary is a freelance writer who specializes in frugal finance. What is less obvious is that Rosemary is also a ghostwriter.
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