Millions of consumers are set to experience significant adjustments to contactless payment card limits following an announcement by the financial regulator. Currently, the contactless limit stands at £100, requiring a four-digit PIN for transactions exceeding this amount. However, the Financial Conduct Authority (FCA) has revealed that starting March 19, 2026, banks and payment providers will have the authority to establish their own limits.
Moreover, companies are being urged to offer customers the option to set their personal limits or deactivate contactless functionality entirely. Many card issuers already permit clients to modify their individual contactless limits or disable the feature altogether.
Currently, individuals can make numerous contactless payments under £100 in a day, but if the cumulative amount surpasses £300, a PIN may be requested. With the upcoming rule adjustment, firms will have the flexibility to potentially revise this requirement. The FCA initially proposed these changes in a letter to the Prime Minister in January, followed by a consultation period until mid-October.
The evolution of the contactless limit has been notable, starting at £10 in 2007, then increasing to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £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 evolving preferences in payment methods. Kate Nicholls, chairwoman of UKHospitality, lauded the FCA’s initiative, citing the benefits for both 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 banks and payment providers greater flexibility regarding contactless limits in the future. While immediate changes to the £100 limit are not anticipated, any future adjustments will prioritize maintaining robust security and fraud prevention measures.
By enhancing flexibility and convenience for both consumers and businesses, the modifications to contactless payment limits aim to align with the evolving landscape of payment preferences and technological advancements.