Contactless limit $200

The limit for contactless payments is being increased from A$100 to $200 to help reduce the risk of COVID-19 transmission by physical contact with payment terminals.

The Australian Payments Network announced on Friday that the limit will be increased progressively across certain cards and retailers, with major supermarkets to be first.

MasterCard announced that the increase will apply in Coles and Woolworths supermarkets from this Thursday, April 9.

AusPayNet chief executive Andy White said in a statement: "Increasing the limit to $200 means that fewer people will need to touch the payment terminal when purchasing. It is a pragmatic response to a changing environment."

The increase will be for three months and will be extended if required.

AusPayNet said payment terminals will have prompts to tell consumers that the contactless limit has been increased.

The change will apply to cards and mobile devices, such as mobile phones, in the same way.

AusPayNet said acquirers would inform merchants when the increased limit was available to them.