The move is aimed at having less cash transactions.
Contactless payments have been increased from a €30 limit to €50 today.
The banking industry agreed on the move as a measure to limit the amount of cash transactions during the Covid-19 outbreak.
The new limit applies to all contactless transactions made in store with a physical debit or credit card in most businesses across the country.
The move has been welcomed by banks, including KBC Bank of Ireland.
"As Irish people continue to navigate the challenges presented by the coronavirus, it is critical that we, as an industry, remain focused on their best interests and offer the necessary supports to make life a little bit easier and safer," Peter Roebben, Chief Executive Officer at KBC Bank Ireland, said.
"The increase to the contactless limit will encourage more consumers to tap and pay for goods and services, thereby limiting the exchange of cash and reducing physical contact in stores.”
Tesco unable to implement change.
Tesco stores around the country will not be able to to implement the changes however.
With a manual fix required on over 4,600 card terminals in over 150 stores around the country.
Tesco said the "risk associated with making such a large volume of software updates is very significant," especially in already very busy stores.
