Millions of consumers are set to experience significant adjustments to contactless payment card limits following recent announcements by the financial regulatory body.
Currently capped at £100, the contactless limit typically necessitates a four-digit PIN for transactions exceeding this threshold. However, the Financial Conduct Authority (FCA) has disclosed that starting March 19, 2026, banks and payment service providers will be granted autonomy to establish their own limits.
Moreover, companies are being urged to enable customers to self-impose limits or deactivate contactless functionality entirely. Many card issuers already offer customers the option to customize their personal contactless caps or disable contactless payments altogether.
As per existing regulations, multiple contactless transactions under £100 can usually be made in a single day. Nevertheless, entering a PIN might be required if the cumulative spending surpasses £300.
Under the revised guidelines, firms will have the flexibility to potentially modify these rules at their discretion. Initially proposed in a letter to the Prime Minister in January, the FCA’s recommendations underwent a consultation period until mid-October.
The evolution of the contactless limit is noteworthy, having ascended from £10 in 2007 to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021. The FCA estimates that 85% of UK residents engage in contactless card payments on a monthly basis.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the popularity of contactless payments and the importance of accommodating future trends while ensuring options for both businesses and consumers.
Kate Nicholls, chairwoman of UKHospitality, lauded the FCA’s initiative for enhancing consumer convenience, particularly in the hospitality and retail sectors, by raising the contactless limit. She highlighted the efficiency and ease that a higher limit can bring to consumer transactions.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to empower banks and payment providers with more control over contactless limits. While immediate changes to the £100 limit are not anticipated, any future adjustments will prioritize robust security measures and fraud prevention.
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