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 may require a four-digit PIN for transactions exceeding this amount. However, the Financial Conduct Authority (FCA) has disclosed that starting March 19, 2026, banks and payment service providers will have the authority to establish their own limits.
Moreover, companies are being urged to allow customers to self-select their limits or disable contactless payments entirely. Many card issuers already offer clients the flexibility to modify their personal contactless thresholds or deactivate the feature.
While the existing regulations permit multiple sub-£100 contactless transactions per day, surpassing a cumulative total of £300 may prompt the need for a PIN entry.
The upcoming change will grant firms flexibility to reconsider this threshold if desired. Initially proposed in a communication to the Prime Minister in January, the FCA’s suggestions were open for public consultation until mid-October.
The evolution of the contactless limit traces back to its inception at £10 in 2007, gradually increasing to £15 in 2010, £20 in 2012, £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, expressed, “Contactless remains the preferred payment method for many. We aim to ensure our regulations accommodate future needs and offer flexibility for both businesses and consumers.”
Kate Nicholls, chair of UKHospitality, commented positively on the change, emphasizing the convenience it brings to consumers and businesses alike.
Jana Mackintosh, managing director of payments and innovation at UK Finance, lauded the FCA’s decision to grant greater flexibility to banks and payment providers regarding contactless limits in the future, emphasizing the method’s popularity and security.
The FCA reassures that while immediate alterations to the £100 contactless limit are not expected, any future adjustments will prioritize maintaining robust security and fraud prevention measures.