Bangladesh Bank increases the limit for Contactless Payment Service to Tk.5,000/-.

Due to the advancement of technology, people’s dependence on Internet Banking and card transactions is increasing exponentially every day. In order to go with this pace, Bangladesh Bank introduced Near Field Communication (NFC) technology for Contactless Payment Service on 12 July 2018 to ensure safety, security, customer interest, and risk minimization while making the transaction.

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In this circular, only credit cards with Near Field Communication (NFC) technology(NFC is a short-range wireless connectivity technology that uses magnetic field induction to enable communication between devices when they are touched together or brought within a few centimeters of each other) are allowed for Contactless Payment Service. The transaction is only allowed for Tk.3,000/- without Personal Identification Number (PIN) or 2nd Factor Authentication. To facilitate and encourage Card-based transactions, Bangladesh Bank Payment Systems Department has issued a further circular increasing the limit from Tk.3,000/- to Tk.5,000/- on 01 February 2023.

This Circular stated that;

  • All types of cards (Debit, Credit, Prepaid) that are EMVCo compliant can use Contactless Payment by using Near Field Communication (NFC) technology.
  • Cards transacted through Near Field Communication (NFC) technology, allowing transactions of up to Tk.5,000/- without a Personal Identification Number (PIN) or a Second Factor Authentication (2FA).
  • When the amount exceeds Tk.5,000/-, you will need to provide your card PIN or 2nd Factor Authentication (2FA).
  • Banks must provide SMS notifications for all transactions to ensure customer satisfaction.
  • Card issuing Banks or Institutions may increase the single Transaction limit or daily limit at their own risk or own discretion.
  • The bank cannot activate Contactless Payment without the customer’s prior consent.
  • To identify Merchant Points, NFC-enabled cards and POS machines must display the “Contactless logo”.
  • If any inconvenience arises regarding cards, card-issuing banks or institutions should provide priority service.

It will reduce the hazards of those who are reluctant to provide their PIN or use 2-factor authentication every time. The service will be more convenient for those who shop below the limit and forget their CARD PIN frequently.

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