Millions of consumers are set to witness significant adjustments to contactless payment card limits following recent announcements by the financial regulatory body.

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

Furthermore, companies are being urged to grant customers the ability to set their personal limits or deactivate the contactless feature entirely. Many card issuers already offer customers the option to customize their contactless limit or disable the functionality altogether.

In adherence to current regulations, multiple contactless payments under £100 are typically permitted in a day. Nevertheless, entering a PIN may be necessary if the cumulative purchases surpass £300.

Under the revised guidelines, firms will possess the flexibility to revisit this rule at their discretion. The FCA initially introduced these proposals in a letter to the Prime Minister in January, followed by a consultation period until mid-October.

The evolution of the contactless limit began at £10 in 2007, progressing to £15 in 2010, then £20 in 2012, £30 in 2015, £45 in 2020, and finally reaching £100 in 2021.

The FCA 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, expressed the importance of ensuring flexibility and choice in payment methods for both businesses and consumers.

Kate Nicholls, chairwoman of UKHospitality, welcomed the change, emphasizing the convenience it brings to consumers and businesses, particularly in the hospitality and retail sectors.

Jana Mackintosh, managing director of payments and innovation at UK Finance, applauded the FCA’s decision to grant banks and payment providers more flexibility regarding contactless limits in the future. Maintaining a focus on security and fraud prevention, any adjustments to contactless limits will be made cautiously.

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