Victoria Cleland, the Bank of England's chief cashier has revealed she doesn't use contactless cards because she doesn't completely trust the technology
Victoria Cleland, the Bank of England's chief cashier has revealed she doesn't use contactless cards because she doesn't completely trust the technology
The Bank of England's chief cashier has revealed she doesn't use contactless cards because she doesn't completely trust the technology.

Victoria Cleland, whose signature is on every Bank of England note, said she prefers to use cash for small transactions.

The 47-year-old also says predictions of the death of cash are premature, insisting that 'cash is definitely here to stay.'

'I personally don't really use contactless,' she told the Guardian.

'To be blunt, it wasn't on my card for a long time and so I've just got into the habit of preferring not to.

'And I do hear stories of friends - this is a personal anecdote, this isn't the official Bank view - whose money has been taken off contactless when you walk past something.

'And it's only up to £30. So I use cash for lower transactions anyway and for big ones contactless wouldn't work.'

Ms Cleland said cash was used for 44 per cent of all transactions in 2016, the last year for which there is data available.

There has been a massive rise in contactless payments following the introduction of bank cards that allow it for transactions of £30 or under

Most banks in the UK now issue their cards as contactless cards meaning they can be used for transactions of £30 or under without a PIN or signature.

Other methods of contactless payment include using smartphones, mobile phone apps, key fobs and wearable devices including watches and wristbands.

According to the UK Cards Association, one in four card payments are now contactless - totalling more than £3.3 billion every month.


Comment: Cashless society: More payments made by card as cash use declines in UK


Contactless cards are built using the same secure system as Chip & PIN with each including a range of security features to safeguard information and protect customers from fraud.

There have also not been any confirmed reports of money being stolen from a contactless card while still in its owner's possession, according to the association.

However, customers will get their money back from their bank if they are a victim of fraud.

The figure is down from 50 per cent the previous year and 68 per cent ten years ago, but she says there is still a growth in the 'total demand for cash.'


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But her comments come as data shows the decline of cash is set to hit a turning point this year with cards overtaking notes and coins as the country's favoured payment method.

Britain will quickly blow past the point of 'peak cash' when card usage overtakes cash as the most popular way to pay.

It follows a massive rise in contactless payments following the introduction of bank cards that allow it for transactions of £30 or under.

It is estimated that only a fifth of sales will involve cash by 2026, according to the Guardian.


Comment: Also from the Daily Mail:
Major banks including RBS, Lloyds, HSBC and Barclays admit thieves can still use your contactless cards even after they've been cancelled

Five of Britain's biggest banks have admitted a 'weakness in the system' that allows fraudsters to use stolen contactless cards after they have been cancelled.

RBS, Lloyds, HSBC, Barclays and Nationwide confessed people can still fall victim to theft even after they have cancelled their cards and reported them lost or stolen.

This comes as a senior Bank of England official has revealed she does not like to use contactless cards - because she doesn't trust the technology.

Virtually all 'tap and pay' cards - which can make purchases under £30 without the need for a PIN - can be used by thieves after they are reported stolen

Virtually all 'tap and pay' cards - which can make purchases under £30 without the need for a PIN - can be used by thieves after they are reported stolen.

In some cases, criminals have been able to use cards for up to eight months after they were cancelled, say watchdogs.

The problem stems from the fact contactless cards can authorise purchases 'offline'.

This means payments are automatically approved without the till connecting to the customer's bank to check a card is valid.

The security loophole was raised more than a year ago and the Financial Conduct Authority pledged to solve the issue - but banks admit it has not yet been fixed.

Financial Conduct Authority (FCA) chief John Griffith-Jones last month admitted the problem of contactless fraud still had not been fully solved.

In March 2017, MPs put pressure on the Financial Conduct Authority to close the security loophole which allows criminals to make 'tap and go' payments on contactless cards months after they have been cancelled.

The Commons Treasury select committee accused banks of placing customers in an 'unacceptable situation' of being vulnerable to fraud despite reporting their card lost or stolen.

The problem is compounded because most banks do not tell their customers when their cancelled card is used, relying on people trawling through statements to identify fraudulent payments before they can receive a refund.

A spokesman for Nationwide said: 'Almost all contactless transactions are now online, so a contactless card will be declined as soon as its reported lost or stolen.

'In a small number of cases such as vending machines, parking charges, road tolls and transport fares the where having the right change can be inconvenient for the customer and costly for the service operator, the payment is made offline.

'However, in these case the transaction will not be applied to the account if the card has been reported lost or stolen, so the customer won't lose out.'

An HSBC UK spokesperson said: 'Once a customer contacts us to say their card has been lost or stolen we cancel their card immediately. There are agreed industry practices around contactless cards, and in addition each bank will have its own fraud protection strategies which are continuously reviewed.

'We cannot go into any detail of how our fraud systems work but customers are protected against losses from this type of fraud.'

Most banks in the UK now issue their cards as contactless cards meaning they can be used for transactions of £30 or under without a PIN or signature.

Other methods of contactless payment include using smartphones, mobile phone apps, key fobs and wearable devices including watches and wristbands.

According to the UK Cards Association, one in four card payments are now contactless - totalling more than £3.3 billion every month.

Contactless cards are built using the same secure system as Chip & PIN with each including a range of security features to safeguard information and protect customers from fraud.

There have also not been any confirmed reports of money being stolen from a contactless card while still in its owner's possession, according to the association.

However, customers will get their money back from their bank if they are a victim of fraud.
WHAT TO DO IF YOUR CARDS ARE LOST OR STOLEN
  • Tell your bank or card provider as soon as possible, so they can cancel the card and send a replacement.
  • Keep a vigilant eye on your account and scrutinise small contactless payments to make sure they are legitimate.
  • If you think your card is being used fraudulently tell your bank or building society immediately and report it to Action Fraud.