.svg)
Millions of consumers will soon be able to choose their own contactless card spending limits — or remove limits altogether — following confirmation from the financial regulator.
From March, banks and card providers will be allowed to set higher or unlimited contactless payment limits without requiring customers to enter a PIN. The Financial Conduct Authority (FCA) is also encouraging providers to give customers the option to set personal limits or disable contactless payments entirely, a feature already offered by some banks.
The change comes despite the FCA’s own research showing limited demand for altering the current £100 contactless limit, with most consumers preferring the existing system.
The regulator said it does not expect banks to immediately raise limits from March, but the new rules give providers the flexibility to do so if they choose.
Contactless payments were first introduced in 2007 with a £10 limit, which gradually increased over time. The cap rose to £15 in 2010, £20 in 2012, £30 in 2015, before jumping to £45 during the Covid-19 pandemic in 2020 and later to £100 in October 2021.
While card payments are currently capped at £100, mobile payments using smartphones already allow unlimited spending, supported by biometric security features such as fingerprint and facial recognition.
However, critics have raised concerns that higher contactless limits could make cards more attractive to thieves and fraudsters, as large payments could be made with a single tap. Safeguards are already in place, including PIN checks after multiple contactless transactions.
The FCA has reassured consumers that victims of fraud would still be fully refunded. David Geale, the FCA’s executive director for payments and digital finance, said contactless payments remain the preferred payment method for many people and rigid limits may slow transactions.
Speaking on the BBC’s Today programme, Mr Geale said the aim is to give banks and payment firms more flexibility where the risk of fraud is low, while encouraging them to allow customers to control their own limits.
Several other countries, including Canada, Australia and New Zealand, already allow industry-set contactless limits.
Jana Mackintosh, managing director of payments and innovation at UK Finance, said any future changes would be implemented carefully, with strong security and fraud protections remaining in place.
Despite this, concerns remain. An FCA survey found that 78% of consumers who responded opposed changing the current limit. Academics and consumer groups warn that unlimited contactless payments could encourage impulsive spending, particularly on credit cards, increasing debt levels.
Financial abuse charities have also expressed worries that unlimited contactless access could enable abusers to drain bank accounts without checks or alerts, and accelerate the move towards a cashless society, which can disadvantage vulnerable people.
Efforts to protect access to cash continue. Cash Access UK announced the opening of its 200th shared banking hub in Billericay, Essex, aimed at supporting customers as traditional bank branches close.
