Millions of consumers are in for significant adjustments to contactless payment card limits as per new guidelines from the financial regulatory body.
Currently capped at £100, the contactless limit mandates a four-digit PIN for transactions exceeding this amount. However, the Financial Conduct Authority (FCA) has announced that banks and payment service providers will have the autonomy to establish their limits starting from March 19, 2026.
Moreover, firms are being urged to offer customers the option to set their preferred limits or deactivate contactless payments altogether. Many card issuers already allow clients to customize their contactless limits or disable the feature entirely.
The existing regulations permit multiple contactless transactions below £100 in a day. Yet, if the cumulative spending surpasses £300, customers may be prompted to enter their PIN.
With the upcoming alteration, companies will have the freedom to revisit this threshold at their discretion. The FCA’s initial proposals were disclosed in a letter to the Prime Minister in January and underwent public consultation until mid-October.
Introduced at £10 in 2007, the contactless limit progressed to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally to £100 in 2021.
The FCA estimates that 85% of UK residents engage in monthly contactless card transactions. David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of accommodating the evolving payment preferences of consumers and businesses.
Kate Nicholls, chair of UKHospitality, lauded the FCA’s decision, highlighting the convenience it brings to both consumers and businesses in the hospitality and retail sectors. Jana Mackintosh, managing director of payments and innovation at UK Finance, commended the FCA’s initiative, emphasizing the security and popularity of contactless payments.
For personalized news and exclusive deals, join our Money WhatsApp group or subscribe to Mirror’s Money newsletter for expert financial advice and shopping offers delivered directly to your inbox.