Millions of consumers are set to experience significant adjustments to contactless payment card limits following an announcement by the financial regulatory body. Currently capped at £100, the contactless limit will now be subject to customization by banks and payment providers starting March 19, 2026.
Furthermore, companies are being urged to offer customers the option to set their own limits or deactivate contactless functionality entirely. Many card issuers already allow users to modify their personal contactless limits or disable the feature altogether.
Previously, multiple contactless transactions under £100 could be made in a day, but exceeding a cumulative total of £300 might prompt the entry of a PIN. With the upcoming rule change, firms will have the flexibility to potentially alter this threshold. The Financial Conduct Authority’s proposals, initially communicated in a letter to the Prime Minister in January, underwent a consultation period until mid-October.
The evolution of the contactless limit saw it initially at £10 in 2007, escalating to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and eventually reaching £100 in 2021. The FCA estimates that 85% of the UK population engages in contactless card payments monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the significance of adapting rules to cater to evolving preferences, providing both firms and consumers with flexibility and choice. Kate Nicholls, chairwoman of UKHospitality, welcomed the change, highlighting the convenience it brings to consumers and businesses in the hospitality and retail sectors.
Jana Mackintosh, managing director of payments and innovation at UK Finance, expressed support for the FCA’s decision to grant greater flexibility to banks and payment providers regarding contactless limits in the future. While immediate changes to the £100 limit are not expected, any adjustments will prioritize maintaining robust security and fraud prevention measures.
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