It sounds to me like this is something for more savvy customers, if you’re going to be able to adjust your limit to suit you.
Whereas those who are most at risk of falling victim to scam calls etc are just gonna be pressurised into overriding the limit in the same way they are through warnings.
Absolutely, it’s always the way.
More warnings are constantly being added to create friction, but all it really does is get in the way of savvy customers. The end result is that scammers always persuade the vulnerable to ignore the warnings because they are susceptible to social engineering strategies. The same social engineering that persuades them it’s a good idea to transfer money after a call out of the blue is going to work to get them to bypass the warning or raise the limit.
“The bank’s fraud team” will probably tell them the limit is there for their own protection, to ensure it’s really they (the customer) transacting on the account and they need to raise it on this occasion to make sure their transfer to a “safe account” can be processed.
You can picture the scene now!
I’ve raised the limit to the maximum myself because the last thing I want is for some slightly-larger than £5,000 sum to get stuck in NatWest and then to have to find my card reader (which I normally never use) to be able to transfer it out via the app. It would be bound to be a problem right at the most inopportune time!
The risk is otherwise minimal, as new payees can only be sent £1,000 at a time in the app anyway.
Pretty sure Starling increase limits too friction free these days too, doesn’t it do some checks in app then raises the limit for that transaction. Or did I dream up reading about it 🤷
You weren’t dreaming. I had this experience recently.
I hope Santander don’t reduce their limit - it’s currently £100k/day - which has proven useful on occasion
A few years ago (I want to say around 2016?) the Faster Payments scheme trialled “large” payments of multi-million pounds, with a view to increasing the scheme limit and doing away with the need for CHAPS.
I thought that would mean an imminent raising of limits at banks afterwards, but nothing came of it and now it looks like the limit is on the way downwards, if anything!
I am starting to feel that the rest of us are being seriously inconvenienced as a result of these initiatives to “protect” consumers. It might make sense to create some friction for customers who have been identified as vulnerable, but for everybody else it is just annoying. If you are not vulnerable and got scammed, then unless it was an inside job you did something wrong. Especially with Confirmation of Payee now available, I can’t believe that “normal” people seem to so easily fall for these scams time and time again? And why should banks have to refund them, really, when they have obviously been stupid?
I would even opt-out of protection from APP fraud if it would allow me to just make “normal” transfers uninterrupted (I know you can’t anyway, and it’s also all tied up with other work to not just protect the customer but also ensure they aren’t laundering money, but it is really making digital payments awkward).
That’s interesting, we allow customers to make multiple transfers of £250k via faster payment or we can arrange a CHAPS if required.
How much do Monzo charge for CHAPS?
£0 
Now all I need is a large sum of money and someone to send it to
I don’t think the Monzo process is all that much of an issue, it’s just the time you take to respond to these requests and support in general. Once you fix that, either with more staff or less need to hop customers between different teams it’ll probably be fine.
Just get in touch when you have the money 
I got my large some from an Indian Prince, he just emailed out the blue one day
Nice! Makes a refreshing change for Monzo not to be charging for something that the industry as standard does charge for (as opposed to the other way around)!
The only other bank I’m aware of that doesn’t charge for CHAPS is Barclays (but they have a £20 fee if you need to change or cancel a payment).
The good old saying, if it sounds too good to be true, then it probably is