Millions of consumers are in for significant alterations to contactless payment card limits as per the latest updates from the financial regulatory body.
Presently capped at £100, the contactless limit mandates a four-digit PIN for transactions exceeding this threshold. However, starting March 19, 2026, the Financial Conduct Authority (FCA) has granted banks and payment service providers the authority to establish their own limits.
Additionally, businesses are being prompted to empower customers to set personalized limits or deactivate contactless features entirely. Many card issuers already offer clients the option to adjust their individual contactless thresholds or disable the functionality altogether.
Under the existing regulations, multiple sub-£100 contactless payments are typically permissible within a day, but surpassing a cumulative total of £300 may trigger a PIN request.
The forthcoming amendment enables companies to reconsider this practice at their discretion. Initially outlined in a letter addressed to the Prime Minister in January, the FCA’s proposals underwent public consultation until mid-October.
The contactless limit has undergone several increments over the years, starting from £10 in its 2007 inception, progressing to £15 in 2010, then £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021.
Previously, the FCA estimated that 85% of the UK population engages in monthly contactless card transactions.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the popularity of contactless payments among the public. He stressed the importance of adapting regulations to accommodate future needs and preferences of both businesses and consumers.
Kate Nicholls, chairwoman of UKHospitality, lauded the FCA’s initiative, anticipating enhanced consumer convenience in various sectors due to the raised contactless limit.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant greater flexibility to financial institutions and payment providers regarding contactless transaction limits. She reassured that any future adjustments would prioritize robust security measures to combat fraud effectively.