Changes are on the way for contactless payment card limits as the financial regulator unveils new plans, affecting millions of shoppers.
The current contactless limit of £100 may soon be a thing of the past, as the Financial Conduct Authority (FCA) has announced that banks and payment providers will have the freedom to set their own limits starting March 19, 2026.
Additionally, companies are being urged to allow customers to set their own limits or disable contactless payments altogether. Some card issuers already offer the option for customers to adjust their personal contactless limits or deactivate the feature entirely.
Presently, multiple contactless transactions under £100 can be made in a day, but if the total surpasses £300, entering a PIN may be required.
The FCA’s proposals, first presented in a letter to the Prime Minister in January, were open for consultation until mid-October, allowing firms the flexibility to review and potentially modify the rules.
The evolution of contactless limits has been notable, starting at £10 in 2007, gradually increasing to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021.
According to the FCA, approximately 85% of individuals in the UK engage in contactless card payments every month, showcasing the popularity of this payment method.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of providing flexibility for both consumers and businesses in the ever-evolving payment landscape.
Kate Nicholls, chairwoman of UKHospitality, expressed support for the FCA’s initiative, highlighting the convenience it brings to consumers and businesses alike in the hospitality and retail sectors.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant banks and payment providers greater flexibility in setting contactless limits, ensuring that security and fraud controls remain robust amid any potential future changes.