Millions of consumers are set to encounter significant adjustments to contactless payment card limits following an announcement by the financial regulator. Currently capped at £100, the contactless limit may soon vary as banks and payment providers gain the authority to establish their own limits starting March 19, 2026.
In addition to this change, companies are being urged to offer customers the option to set their personalized limits or deactivate contactless payments entirely. While many card issuers already grant users the flexibility to adjust their contactless limits or disable the feature, the current regulations allow for multiple contactless transactions below £100 per day, with a request for a PIN if cumulative spending surpasses £300.
The recent rule adjustment empowers firms to reconsider these thresholds at their discretion. This initiative, initially outlined in a communication to the Prime Minister in January, was subject to public consultation until mid-October.
Introduced at £10 in 2007, the contactless limit progressively rose to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and eventually reached £100 in 2021. The Financial Conduct Authority estimates that 85% of UK residents engage in monthly contactless payments.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to accommodate evolving preferences, ensuring flexibility for both businesses and consumers. UKHospitality chairwoman Kate Nicholls praised the forthcoming change for enhancing convenience in the hospitality and retail sectors.
Acknowledging the growing popularity and security of contactless payments, Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant more flexibility to financial institutions regarding contactless limits, highlighting the ongoing commitment to maintaining robust security measures amid any future adjustments.