The Financial Conduct Authority (FCA) has announced that it will introduce new limits for contactless card payments to make it easier for customers to make large payments.
The proposal is one of around 50 measures that the FCA initially outlined in a letter to the Prime Minister in January to support economic growth and prioritise digital solutions. The proposals are out for consultation until 15 October 2025.
Many card providers already offer customers the ability to adjust their personal contactless limits or turn off contactless functionality on their cards altogether. The FCA said it is now encouraging firms to continue to offer their customers this choice.
“We‘re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation,” said David Geale (Executive Director of Payments and Digital Finance at the FCA).
“While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers. People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”
Contactless card payments come with the same protection as any other card payment, meaning banks and payment firms must reimburse unauthorised fraud cases, such as when somebody’s card has been lost or stolen.
Contactless payment fraud is where a contactless card is lost or stolen and then used by someone other than the cardholder to pay for goods and services at a contactless terminal.
The UK Finance’s Annual Fraud Report 2025 estimates that contactless fraud rates are currently low at circa 1.3p per £100 spent on contactless transactions, compared to 6p per £100 for all unauthorised fraud.
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