Millions of consumers will witness significant adjustments to contactless payment card limits following the recent announcement by the financial regulatory authority.

Presently, the contactless limit stands at £100, requiring a four-digit PIN for transactions exceeding this amount. However, the Financial Conduct Authority (FCA) has confirmed that starting March 19, 2026, banks and payment providers will have the autonomy to establish their own limits.

Companies are also being urged to offer customers the option to set their personal limits or deactivate contactless functionality entirely. Many card issuers already permit clients to customize their contactless limits or disable the feature.

Currently, multiple contactless payments under £100 can typically be made in a day, but surpassing £300 may prompt the need for a PIN entry.

With the upcoming regulation amendment, firms will have the flexibility to review and potentially modify these rules. The FCA initially introduced these proposals in a letter to the Prime Minister in January, followed by a consultation period until mid-October.

Initially set at £10 in 2007, the contactless limit progressively increased 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 contactless card payments monthly.

David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to meet evolving needs and preferences of both businesses and consumers.

Kate Nicholls, chairwoman of UKHospitality, expressed enthusiasm for the change, stating that it would enhance the convenience for consumers and businesses alike.

Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s decision, foreseeing enhanced flexibility for banks and payment providers regarding contactless limits while ensuring robust security measures.

We and our partners use cookies and other identifiers to enhance user experience, analyze site usage, and provide personalized advertising. Opting out of data sharing can be done at any time by clicking the appropriate button. Your usage of our site signifies acceptance of cookie usage and consent to our Privacy Notice and Terms and Conditions.