Goodbye to the £100 limit on contactless payments
From March 2026, banks and card providers will be able to set their own maximum single contactless payment limit, or even allow an unlimited amount to be spent without customers needing to enter their PIN.
The Financial Conduct Authority (FCA) has announced that it will list its rule requiring contactless payments over £100 to be confirmed with a customer PIN, giving banks the authority to set this limit themselves.
The FCA said that this will allow banks and payment providers with strong fraud controls to better respond to their customers’ demands, and it is encouraging these firms to allow customers to set their own contactless payment limit, or even the option to turn off contactless payments altogether.
Research shows that almost 95% of all eligible in-store card transactions were made using contactless technology in 2024, signalling the widespread adoption of this technology and the need for banks and payment providers to ensure they have strong fraud controls in place when processing these transactions.
The change to contactless limits follows a public consultation around making contactless payments more convenient for consumers while supporting growth and ensuring fraud protections remain in place.
The FCA said that while it was removing the £100 limit, existing consumer protections remain in place and in any case of unauthorised fraud, consumers must be reimbursed by their bank for the amount lost.
This rule change allows customers more flexibility while also requiring that banks and payment providers retain the same protections and make their own decisions regarding contactless limits.
It will come into effect from March 2026, after which any firm that changes its contactless limits will be required to communicate its changes clearly to customers.
The FCA said it expects that most banks and payment providers will maintain their existing contactless limits for the foreseeable future, even after these changes are introduced.
