The financial regulator has announced upcoming changes to contactless payment card limits that will impact millions of shoppers. Currently capped at £100, the contactless limit will now be determined by individual banks and payment providers starting from March 19, 2026.
In addition to this, companies are being urged to offer customers the ability to set their own limits or disable the contactless feature entirely. Many card issuers already allow users to adjust their personal contactless cap or deactivate the function.
Presently, consumers can make multiple contactless transactions under £100 per day, but if the cumulative spend exceeds £300, entering a PIN may be required. With the impending rule alteration, firms will have the option to modify this threshold as desired.
The initial proposals from the FCA were outlined in a letter to the Prime Minister in January, followed by a consultation period until mid-October.
Since its introduction in 2007 at £10, the contactless limit has seen gradual increments, reaching £100 in 2021. The FCA estimates that 85% of individuals in the UK engage in 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 payment preferences. Kate Nicholls, chairwoman of UKHospitality, lauded the change for its convenience to consumers and businesses.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to provide greater flexibility to banks and payment providers regarding contactless limits, emphasizing the popularity and security of contactless payments. Any future adjustments to the £100 limit will prioritize robust security measures against fraud.
This move aims to enhance convenience and flexibility in payment methods while ensuring the safety and integrity of transactions in the evolving digital payment landscape.