After a successful pilot launch, limits for contactless payments will be temporarily increased.
Payments NZ has announced that New Zealand’s payments industry will progressively roll out a temporary increase to the PIN limit for contactless card payments to $200. The increase, which is up from the current $80 limit, aims to help reduce the need for customers to touch PIN pads when making in-store purchases during the COVID-19 pandemic.
The new temporary limit will be introduced by most New Zealand banks and card providers and will be available at an increasing number of retailers. Given the number of cards, payment terminals and businesses involved from across the country – it’s expected to take a few weeks for the roll out to be completed industry wide.
“This PIN limit increase adds to a range of other initiatives banks, retailers and other organisations have put in place to help support Kiwi communities through this pandemic,” explained Payments NZ Chief Executive Steve Wiggins, who noted the overwhelming support and commitment from across the industry to implement the increase as soon as possible.
“We will be making the process as easy as possible for customers. In fact, all they will need to do is follow the usual prompts on the PIN pad when paying. If the limit has become active on that terminal, it will kick in automatically.”
In raising the PIN limit for contactless cards from $80 to $200, New Zealand is in line with similar measures from countries around the world, including Australia.
The industry felt it was a practical option to adopt at this time, as customers are by necessity going to the shops less, but potentially also spending more on each visit to make up for it. It was important for the payments industry to respond to the changing environment, said Wiggins, while also balancing safety and security.
“While contactless cards are a secure form of payment, cardholders should always keep their cards safe like you would with cash in your wallet,” reminded Wiggins.
Payments NZ has answered important questions about the limit increase for both card holders and businesses, you can view these here.
For businesses to remain contactless there is also the option of taking payments over the phone or through secure online payment methods. This doesn’t just have to be for delivered items, payment can be made prior to contactless pick-up also.
For tips on how to set up an e-commerce site for your business click here.
Here are links to the Covid-19 relief pages of some of New Zealand’s most popular banks, check out what your bank is offering you.
Payments NZ has assured that the $200 limit will remain in place for as long as necessary in consideration of the Covid-19 pandemic.
