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 autonomy to establish their own limits.
Furthermore, companies are being urged to offer customers the option to customize their limits or disable contactless functionality altogether. Many card issuers already permit clients to adjust their personal contactless thresholds or deactivate the feature entirely.
Previously, multiple contactless payments below £100 could be made in a day, with a PIN request triggered if the cumulative purchases exceeded £300. The rule alteration will grant firms the flexibility to reconsider this threshold if desired. The FCA initially proposed these changes in a letter to the Prime Minister in January and subsequently opened them up for consultation until mid-October.
Introduced at £10 in 2007, the contactless limit has since increased to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally 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 accommodate future needs and ensure flexibility for both businesses and consumers.
Kate Nicholls, chairwoman of UKHospitality, praised the FCA’s initiative, stating that enhancing consumer convenience benefits hospitality and retail establishments. Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant banks and payment providers increased flexibility regarding contactless limits, emphasizing the popularity and security of contactless payments.
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