Changes to contactless payment card limits are on the horizon, affecting millions of shoppers as per the latest announcement by the financial regulator.
The current contactless limit, which stands at £100, is set to be altered, allowing banks and payment providers to establish their own limits starting March 19, 2026.
Additionally, businesses are being prompted to enable customers to set their personal limits or deactivate contactless functionality entirely. Many card issuers already grant customers the ability to adjust their contactless limit or switch off the feature.
Currently, multiple contactless transactions under £100 can typically be made in a day, but if the total surpasses £300, entering a PIN may be required.
Under the upcoming adjustment, companies will have the freedom to potentially modify these regulations. The initial proposals by the Financial Conduct Authority (FCA) were communicated in a letter to the Prime Minister in January and underwent consultation until mid-October.
The evolution of the contactless limit has seen it increase from £10 in 2007 to £15 in 2010, then to £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 payments monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to cater to evolving preferences, offering flexibility for both businesses and consumers.
Kate Nicholls, chairwoman of UKHospitality, hailed the forthcoming change as a positive step that will enhance convenience for consumers and benefit businesses in the hospitality and retail sectors.
Jana Mackintosh, managing director of payments and innovation at UK Finance, expressed support for the FCA’s decision, highlighting the popularity and security of contactless payments and assuring that any future adjustments will prioritize maintaining robust security and fraud prevention measures.
