UK Scraps £100 Contactless Card Limit From 19 March: Banks and card companies are encouraged to set their own maximums in accordance with adjustments disclosed by the regulator. Next year, the UK banking regulator will eliminate the £100 cap on contactless card payments, allowing customers to spend as much as they like without entering their pin. The Financial Conduct Authority (FCA) stated that starting on March 19, banks and card providers might set their own maximums. Currently, contactless card purchases are restricted, but mobile phone payments are not.
Customers are required to enter their pin following a cumulative limit of £300 or five “taps” in addition to the single transaction limit. Additionally, providers will have the option to lift this. According to the FCA, the modifications would enable banks to adapt to evolving customer needs, inflation, and emerging technologies.
However, it stated that consumers should be free to establish their own limit or disable the contactless feature if they so want. It also stated that it anticipated that most carriers will maintain their current limitations in the near future.
UK Scraps £100 Contactless Card Limit
Beginning in March 2026, all customers will be impacted by a significant shift in the way individuals pay at stores utilizing contactless technology. Next year, consumers may find it simpler to use contactless payment to make larger purchases.
As of right now, physical contactless cards allow users to pay up to £100 per transaction. However, banks and payment providers with robust fraud controls will be permitted to establish their own restrictions under measures the Financial Conduct Authority (FCA) will implement next year.
The FCA states that if a company decides to alter its restrictions after the regulatory changes take effect on March 19, 2026, it must notify its clients in a clear and concise manner.
2007 saw the introduction of contactless card payments with a £10 payment cap. The cap was progressively increased, reaching £15 in 2010, £20 in 2012, and £30 in 2015. A spike of £45 in 2020 and £100 in October 2021 was caused by the Covid epidemic.
Earlier this year, a consultation on the most recent increase was initiated. 95% of eligible payments made in stores are now contactless, according to research from Barclays Bank. However, a survey conducted for the FCA revealed that 76% of customers believed the maximum should be £100 or less, despite rising retail costs.
No More £100 Limit: UK Contactless Card Rules Change
According to the FCA, banks and card companies with robust fraud measures would be subject to the rule modification. It stated that victims of unauthorized fraud, such as when their card is lost or stolen, would have to be compensated and that current consumer protections would continue.
“People’s preferred method of payment is contactless,” stated David Geale, the FCA’s executive director of payments and digital finance. We want to ensure that our regulations offer choice and flexibility for businesses and consumers in the future.
UK Payment Rules Change
The change will be “a positive” for her members and other high street businesses, according to Kate Nicholls, chair of the trade association UKHospitality.
“Lifting the limit can mean quicker and easier experiences for consumers, as contactless has become the preferred method of choice for many people,” she stated. “This change adds much-needed flexibility for providers and consumers, even though many people still prefer to use cash or chip and pin.”
However, University of Salford economist Richard Whittle warned that consumers might have to pay for the additional convenience. He stated, If this ease of payment causes consumers to spend without thinking, they may be more likely to buy what they don’t really need or want. When people spend borrowed money and accrue debt, this might be a special problem with credit cards.