Millions of consumers are in for significant adjustments to contactless payment card limits as the financial regulator unveils new plans. Currently capped at £100, contactless transactions that exceed this amount typically require a four-digit PIN. However, the Financial Conduct Authority (FCA) has announced that starting March 19, 2026, banks and payment providers will have the authority to establish their own limits.
In addition, companies are being urged to allow customers to set their own limits or disable contactless payments entirely. Many card issuers already offer customers the option to adjust their personal contactless limits or deactivate the feature altogether.
Presently, multiple contactless transactions under £100 can be made in a day, but if the cumulative spending surpasses £300, a PIN may be required. With the impending rule change, firms will have the freedom to reconsider this threshold. The FCA’s initial proposals, communicated in a letter to the Prime Minister in January, were subsequently open for consultation until mid-October.
Originally set at £10 in 2007, the contactless limit has seen gradual increments 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 popularity of contactless payments, aiming to ensure flexibility and choice for both businesses and consumers. Kate Nicholls, chairwoman of UKHospitality, lauded the change, noting the convenience it brings to consumers and businesses. Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant banks and payment providers more flexibility regarding contactless limits, emphasizing the security and popularity of contactless payments.
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