Millions of consumers will experience significant adjustments to contactless payment card limits as per the latest guidelines from the financial regulatory body. The current contactless limit of £100 will no longer be fixed, allowing banks and payment providers to establish their own limits starting March 19, 2026.
Furthermore, businesses are encouraged to offer customers the option to set their personal contactless limits or disable the contactless feature entirely. Many card issuers already permit customers to modify their individual contactless thresholds or deactivate the feature altogether.
Presently, multiple contactless transactions under £100 can be made in a day, but if the cumulative total surpasses £300, entering a PIN may be required. The regulatory amendment grants firms the flexibility to potentially adjust this threshold as desired.
Initially proposed in a letter to the Prime Minister in January, the FCA’s suggestions underwent a consultation period until mid-October before being finalized. The contactless limit has progressively risen from £10 in 2007 to £100 in 2021, reflecting consumer payment preferences.
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 offer flexibility and choice to both businesses and consumers.
Kate Nicholls, chairwoman of UKHospitality, praised the forthcoming change for its convenience to consumers and potential benefits for businesses. Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to allow greater flexibility in setting contactless limits in the future, emphasizing the popularity and security of contactless payments.
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