Millions of consumers are set to experience significant adjustments to contactless payment card limits following the recent announcement by the financial regulatory body.
Currently capped at £100, the contactless limit requires a four-digit PIN for transactions exceeding this amount. However, the Financial Conduct Authority (FCA) has confirmed that starting March 19, 2026, banks and payment providers will have the authority to establish their own limits.
Additionally, companies are being prompted to allow customers to customize their limits or deactivate contactless functionality entirely. Several card issuers already offer clients the option to adjust their personal contactless limits or disable the feature.
Presently, multiple contactless payments under £100 can be made in a day. However, if the total surpasses £300, customers may need to input their PIN.
Furthermore, with the impending rule modification, firms will have the flexibility to reassess this threshold at their discretion. The FCA initially proposed these changes in a letter to the Prime Minister in January, following which a consultation period was held until mid-October.
The evolution of the contactless limit saw it start 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 utilize contactless card payments monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to accommodate evolving preferences, providing options for both businesses and consumers.
Chairwoman of UKHospitality, Kate Nicholls, lauded the FCA’s initiative, noting the positive impact on consumer convenience 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. She highlighted the popularity and security of contactless payments, assuring that any future adjustments would prioritize robust security measures.
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