Tried to use contactless in Caffe Nero today but the contactless terminal didn’t recognise there was a card there so the transaction didn’t get as far as being declined. Chip & PIN worked fine. Caffe Nero contactless terminals are ancient and I have experienced problems in the past with them but maybe worth investigating if the problem is card or merchant related.
I had the same issue as well, even chip and pin didn’t work for me
This morning at a Caffee Nero with the same setup (separate contactless terminal) my transaction was declined. There was plenty of balance to cover the transaction. Shows up as a payment and a refund in the app.