Millions of consumers are set to witness significant adjustments to contactless payment card limits following the recent announcement by the financial regulator.
Currently, the contactless limit stands at £100, requiring a PIN entry 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.
Furthermore, companies are being encouraged to offer customers the option to self-impose limits or disable contactless functionality entirely. Many card issuers already permit customers to customize their personal contactless limits or deactivate the feature.
Presently, multiple contactless payments below £100 can be made in a day, with a PIN prompt necessary if the cumulative total surpasses £300. The FCA’s proposals, initially outlined in a letter to the Prime Minister in January, were open for public consultation until mid-October.
Since its inception in 2007 with a £10 limit, the contactless cap has gradually increased to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and eventually to £100 in 2021. The FCA estimates that 85% of UK residents engage in contactless card transactions monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to cater to evolving preferences. Kate Nicholls, chairwoman of UKHospitality, lauded the upcoming change for its convenience and efficiency in customer transactions.
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 determining contactless limits moving forward. She stressed the continued commitment to maintaining robust security measures and fraud controls despite potential future adjustments.