I am not putting my CC or DD card anywhere near a conatctless system - I keep a > 3£k balance on my Santander DD to get the good interest rate.
https://www.youtube.com/watch?v=y83ZgzuFBSE
And the fear of contactless payments is almost funny - someone would need to go to ridiculous length to read a card via PayWave/PayPass(the card won't reply to a non-genuine key, so you would need to have an actual authorized reader or access to one), and the most you can spend is 25 pounds per transaction, and you can only do it 5 times before you have to enter the pin. In the meantime, you can anonymously buy thousands of stolen card numbers online - so why bother with contactless? I will always use it if there is an option to.
Brian Krebs has written a few things about ways they (try to) get away with it: http://krebsonsecurity.com/tag/money-mules/
Specific UK example that happened recently to a friend of mine, he had a single HSBC current account with ~£5000 in it. He had a debit card with that account, and used that in ATMs, at restaurants, etc. as his primary spending mechanism. His debit card got cloned and the account emptied.
There are protections in place, one of which that he still had possession of the card, that resulted in him getting all the money refunded to his account. However, the process took six weeks. For the duration of that time, he had no money at all.
Since then, he has a separate account that he uses for ATMs (never keeps more than £500 in there) and all other spending goes on a credit card, which gets paid off in full every month. If his ATM card gets cloned, he's out £500 at most for a few weeks until he gets it refunded. If his credit card gets cloned, he's not out a single penny, as disputed transactions are struck from statement balances due at the end of the month.