Millions of consumers are set to experience significant modifications to contactless payment card limits following the latest directive from the financial regulatory body.
Presently, the contactless payment threshold stands at £100, requiring a PIN entry for transactions exceeding this amount. However, the Financial Conduct Authority (FCA) has confirmed that starting March 19, 2026, banks and payment service providers will have the autonomy to establish their own limits.
Additionally, companies are being urged to offer customers the option to set their personalized limits or deactivate the contactless feature entirely. Many card issuers already allow users to adjust their individual contactless thresholds or disable this functionality.
Under the existing regulations, multiple contactless transactions under £100 can typically be made in a day. Nevertheless, if the cumulative spend surpasses £300, a PIN entry may be requested.
With the upcoming rule adjustment, firms will have the flexibility to review and potentially revise these provisions. The FCA initially introduced these propositions in a letter to the Prime Minister in January, followed by a consultation period until mid-October.
The evolution of the contactless limit started at just £10 in 2007, gradually increasing to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021.
According to previous statements by the FCA, an estimated 85% of UK residents engage in contactless card transactions monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the popularity of contactless payments among consumers and the importance of ensuring rules that cater to both businesses and customers.
Kate Nicholls, chairwoman of UKHospitality, applauded the forthcoming change for its potential to enhance consumer convenience and streamline transactions for businesses.
Jana Mackintosh, the managing director of payments and innovation at UK Finance, welcomed the FCA’s decision to grant greater flexibility to banks and payment providers regarding contactless limits in the future. Emphasizing the security and popularity of contactless payments, Mackintosh reassured that any future alterations to the £100 limit would prioritize robust security measures and fraud prevention.