The financial regulator has unveiled upcoming changes to contactless payment card limits that will impact millions of shoppers. Currently capped at £100, contactless transactions above this threshold typically require the input of a four-digit PIN. However, starting March 19, 2026, banks and payment providers will have the autonomy to establish their own limits.
Moreover, companies are being advised to empower customers to set personalized limits or deactivate contactless functionality entirely. Many card issuers already offer the flexibility for clients to adjust their individual contactless limits or disable the feature altogether.
While the existing regulations permit multiple sub-£100 contactless payments in a day, transactions totaling over £300 may prompt the entry of a PIN. The proposed rule amendment grants firms the flexibility to revisit this threshold if desired. Initially outlined in a letter to the Prime Minister in January, these proposals were subject to public consultation until mid-October.
The evolution of the contactless limit has been evident over the years, starting at £10 in 2007, gradually increasing to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021. The Financial Conduct Authority estimates that 85% of individuals in the UK engage in contactless card transactions monthly.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the importance of adapting rules to accommodate evolving preferences, aiming to offer both firms and consumers flexibility. Kate Nicholls, chairwoman of UKHospitality, welcomed the change for its potential to streamline transactions for customers, citing the growing preference for contactless payments.
Jana Mackintosh, managing director of payments and innovation at UK Finance, expressed support for the FCA’s decision to grant banks and payment providers increased flexibility regarding contactless limits in the future. While immediate modifications to the £100 cap are not anticipated, any future adjustments will prioritize robust security and fraud prevention measures.
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