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The £100 cap on contactless card payments is to be lifted – under changes that will allow some shoppers to set their own limits.
Under the plans, from the Financial Conduct Authority (FCA), banks and other card providers with strong fraud controls will be able to set their own rules for such transactions from 19 March.
They are also being encouraged to let consumers set their own limits or be granted the ability to turn off contactless payments altogether, as many banks already do.
The shake-up aims to make it easier for shoppers to pay larger sums by tapping their card without using a pin code.
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The current rules set the limit for contactless card payments at £100 per transaction.
The FCA said the method had become consumers’ preferred way to pay. It hopes that the greater flexibility will “incentivise firms to step up their fraud prevention, giving consumers greater protection and peace of mind”.
The reforms will also allow firms to better respond to changing consumer demands, inflation and new technology, the regulator said.
The popularity of paying with the tap of a card has surged in recent years.
Consumer spending data from Barclays showed that 94.6% of eligible in-store card transactions were contactless in 2024.
There were also 10 times more contactless transactions per month last year than there were in 2015, the bank said.
Changes to such limits were among about 50 proposals suggested by the regulator in a letter to Prime Minster Sir Keir Starmer in January after the government asked for ideas to boost economic growth.
Changes ‘make life easier for consumers’
David Geale, the FCA’s executive director of payments and digital finance, said: “Contactless is people’s favoured way to pay. We want to make sure our…
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