Millions of consumers will experience significant adjustments to contactless payment card limits following the recent announcement by the financial regulatory authority.
Currently capped at £100, the contactless limit requires a PIN for transactions exceeding this threshold. However, the Financial Conduct Authority (FCA) has disclosed that starting March 19, 2026, banks and payment service providers will have the autonomy to establish their own limits.
Encouraging flexibility, firms are urged to enable customers to set personalized limits or deactivate contactless functionality entirely. Many card issuers already offer the option for customers to modify their contactless cap or disable the feature.
Presently, multiple contactless payments under £100 can be made in a day, but surpassing £300 in cumulative transactions may prompt the entry of a PIN. The regulatory amendment grants companies the flexibility to reconsider this provision.
Initially proposed in a letter to the Prime Minister in January, the FCA’s suggestions underwent a consultation period until mid-October.
The evolution of the contactless limit began at £10 in 2007, progressively 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 payments monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to accommodate future preferences for both businesses and consumers.
Kate Nicholls, chairwoman of UKHospitality, praised the FCA’s decision, anticipating enhanced convenience for consumers and businesses within the hospitality and retail sectors.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s initiative to grant greater flexibility to financial institutions regarding contactless transaction limits, emphasizing the popularity and security of contactless payment methods.
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