This could also mean that the limit will no longer be the same across all providers
Contactless card limits are poised to surpass £100 with companies setting their own thresholds, according to proposals outlined by the City regulator. The Financial Conduct Authority (FCA) revealed it wishes to provide card issuers with the flexibility to determine appropriate limits for themselves and their customers.
This development could enable individuals to enjoy greater convenience when “tapping and going” for larger purchases. The contactless card threshold has been increased incrementally over recent years, presently sitting at £100. The regulator’s recommendations are available for consultation until October 15.
Numerous card issuers already provide customers with the option to modify their individual contactless thresholds or disable contactless features on their cards entirely. The FCA stated it is urging companies to maintain this customer choice.
David Geale, executive director of payments and digital finance at the FCA, commented: “We’re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation.
“While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers. People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”
Contactless card payments offer the same protections as other card payments, ensuring banks and payment firms must reimburse unauthorised fraud cases, such as when a customer’s card has been lost or stolen. According to UK Finance’s Annual Fraud Report 2025, contactless fraud rates are currently low, at around 1.3p per £100 spent on contactless transactions compared with 6p per £100 for all unauthorised fraud.
This is one of approximately 50 measures that the regulator proposed in a letter to Prime Minster Sir Keir Starmer in January to help bolster economic growth. As of March, the regulator stated that 85% of people in the UK utilise contactless card payments each month.
Any alterations would need to promote good customer outcomes as mandated by the Consumer Duty rules, the FCA has previously stated. The regulator has previously launched a contactless payments engagement paper which received nearly 1,300 responses.
Based on industry feedback, it anticipates that most firms would continue to implement the £100 limit for the time being, it said.
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