Millions of consumers can expect significant adjustments to contactless payment card limits as per the latest guidelines from the financial regulatory body.
Currently capped at £100, contactless transactions typically require a four-digit PIN for amounts exceeding this threshold. However, the Financial Conduct Authority (FCA) has confirmed that starting March 19, 2026, banks and payment service providers will have the autonomy to establish their own limits.
Additionally, companies are being prompted to offer customers the option to customize their limits or deactivate contactless functionality entirely. Many card issuers already permit users to modify their personal contactless limits or disable the feature altogether.
Presently, individuals can make multiple contactless payments below £100 in a day, but transactions totaling over £300 may prompt a PIN entry. With the new regulations, companies will have the flexibility to adjust this policy at their discretion. The FCA initially introduced these proposals in a communication to the Prime Minister in January, followed by a consultation period until mid-October.
The evolution of contactless limits over the years is noteworthy, starting at £10 in 2007, increasing to £15 in 2010, then to £20 in 2012, followed by increments to £30 in 2015, £45 in 2020, and finally reaching £100 in 2021.
According to the FCA, an estimated 85% of UK residents engage in contactless card transactions on a monthly basis. David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to accommodate future needs and preferences of both businesses and consumers.
Kate Nicholls, chair of UKHospitality, expressed positivity towards the change, highlighting the benefits it brings to consumers and businesses in the hospitality and retail sectors. Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant greater flexibility to banks and payment providers regarding contactless limits, emphasizing the security and popularity of contactless payments.
Overall, these changes aim to enhance consumer convenience and payment flexibility while maintaining stringent security measures to combat fraud.