A Co Armagh councillor has hit out at proposals to raise the limit on single contactless payments, warning it could hand criminals an even greater payday.
Alderman Gareth Wilson, the DUP’s Cusher representative on ABC Council, was responding to news that the Financial Conduct Authority (FCA) is considering allowing banks and service providers to increase the maximum spend allowed through contactless card transactions.
The councillor described the move as a “thief’s dream”, arguing that while customers are usually protected against fraudulent withdrawals, the potential for criminals to make off with higher-value goods would inevitably rise.
“Whilst I can understand that the FCA are looking at the meteoric rise in phone-based payment systems where no amount restriction exists – particularly amongst young people – and the extra level of security that phone-based systems provide, the fact remains that for many people card payments are their chosen method, either via contactless or using their four-digit code,” Alderman Wilson said.
“If the FCA proposals are adopted this would inevitably lead to banks increasing the amount permissible to be paid out via a contactless transaction and herein lies the problem. I feel this would simply accelerate the level of theft to even greater levels than is the case at present and that means the thief gets even more for their criminality.”
The Cusher councillor urged the FCA to retain current limits, saying many people are comfortable with the protections already in place.
“The FCA in my view should retain the current limits as I know that people I speak to are content with the lower limit as it does limit the gains in a fraudulent or theft-type situation,” he added.
“Whilst the person is protected in those situations, a criminal still makes an ill-gotten gain – and that is the issue that needs to be at the forefront of the FCA’s collective mind. Limit both the opportunity for financial criminality and the gains for criminals – keep the limits as they are.
“Also it is important to note the importance of cash in this age of digital transactions and I continue to be a supporter of cash-based systems, given the reliance on cash by many people including the vulnerable in society.”
