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Do Digital Wallets Have Transaction Limits?

September 14, 2023 by Susan Paige

Do you remember when contactless cards first came out? Or when contactless payments were increased to £100 without entering a PIN? People were shocked, some were pleased while others were worried. Where did you stand? Do you want to find out more about them? We explore the digital wallet transaction limits in this guide.  

What are digital wallets? 

What are digital wallets? More and more people are moving away from traditional cash and into online equivalents, but it’s not as common in North America as elsewhere in the world. Digital wallets are like your regular wallets but instead are electronic and take money directly from your bank account to wherever you are paying. To sum it up, it is an application for financial transactions. Your passwords and payment information are safely stored in the cloud, and it can be on any digital device, mainly used on phones, smartwatches and laptops. 

However, they are considered controversial, as they are simply too easy. Users across the pond talk of endlessly tapping their cards, not even having to think about the pin, and sometimes it is just too easy to spend money. Have you ever gone to put your card in, and it asks you for your PIN, because you are so used to tap and go, you may have for a moment forgotten your PIN number?

How popular are digital wallets? 

Some examples of the most common and known among people are Apple Pay, Google Wallet, Samsung Pay, PayPal and Venmo. Some places such as Starbucks have adapted to being card-only in their shops, however, not all Starbucks are going cashless which means you will need to switch over to cards and/or digital wallets.  

The most common use for digital wallets is for contactless checkouts. Small business owners are switching to cashless transactions more often due to reasons like rising consumer demand, quicker checkout, cheaper labour, and improved security. Due to contactless being quick and easy, people have become more impatient with the speed of paying in stores. 

Using digital wallets makes transactions so much easier and quicker so when betting online, you can place it faster letting you spend your time having fun rather than searching for cash. It is quick and easy to use betting apps, shopping apps and games apps all of which expand our digital horizons. 

Transactions limits  

What are the limits? In places such as Home Depot where you are DIY renovating or refurbishing parts of your house, it is easy to spend vast amounts of money for your home to look nice. You can easily spend over $100, so it is easier using a card because who wants to be carrying around that much money? It’s not really safe.  

The limit for contactless card payments is up to $100 without having to use your physical bank card and input Google Pay/Wallet, Apple Pay or Samsung Pay. Google Pay has no limit on the number or value of in-store transactions while Apple Pay has a limit of $100 but it depends on the store. Samsung Pay has a limit of £200 initially but you can ask to have that extended to $250. However, all of these limits really depend on the store.

Conclusion

People use their bank cards more because it is considered safer. Have you ever lost cash? It could have fallen out of your pocket, or you could have left it down someplace. The same thing can happen with your card but at least there is a pin to protect your money. The safest option is your smartphone or smartwatch with the digital wallet because before paying you have to put in your PIN number, a fingerprint or it scans your face.  In the past few years, more and more people have been switching to bank cards and using digital payments through apps like Google Wallet to pay for everyday things. Fewer people are using cash and carrying around cash because just tapping is so easy, convenient and quick. One tap and you’re away.  

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