Changes to contactless PIN limit

What is happening?

The payments industry will be temporarily increasing the contactless card PIN limit from $100 to $200 to help reduce the risk of COVID-19 transmission by reducing physical contact with the payment terminal.

The new $200 limit will be progressively introduced across certain cards and at certain retailers starting in April 2020.

Why is the limit being increased?

The increase in the contactless limit is consistent with similar increases implemented or under consideration in other countries in response to COVID-19.

Increasing the limit to $200 means that fewer people will need to touch the payment terminal when paying for purchases between $100 and $200.

How do I know when I can use the new $200 limit?

Cardholders will know whether they can use the new temporary limit by following the PIN pad prompt, and can also ask the retailer. The new limit is being rolled-out progressively and will be available on certain cards and at certain retailers.

If the new limit has been introduced on your card, and at the retailer, you will be prompted to tap your card for purchases up to $200, and NO PIN will be required. If the new limit is not available on your card, or at a certain retailer, you will still be prompted to enter your PIN for purchases over $100.

At all times, follow the PIN pad prompts.

Is the increase to the contactless limit likely to become permanent?

The new $200 limit is a temporary measure in response to COVID-19. It is expected to apply for a three-month period, and will be extended if necessary, based on Government advice.

What about security?

Financial institutions will continue to monitor your account through their predictive fraud systems and alert you to any unusual activity. It is vital that you continue to keep your card safe at all times to protect against theft and check your account often. If you lose your card or have any concerns about unauthorised transactions on your account, please contact your financial institution immediately.

Does this apply to mobile payments and other wearables?

Customers can continue to use mobile payments and other devices such as watches when purchasing essential goods. These forms of payment are another highly secure alternative.

As a merchant, what do I need to do?

The roll out to payment terminals will be progressive and your acquirer will let you know when this becomes available. At all times, follow the PIN pad prompts and encourage customers to do the same.

For further information, please contact your financial institution.

See Media Release here.