The financial regulator has announced upcoming significant modifications to contactless payment card limits that will affect millions of shoppers.
Currently, the contactless limit stands at £100, after which a four-digit PIN is typically required. The Financial Conduct Authority (FCA) has stated that starting March 19, 2026, banks and payment providers will have the authority to establish their own limits.
Furthermore, companies are being urged to empower customers to set their own limits or disable contactless payments entirely. Many card issuers already offer customers the option to adjust their personal contactless limits or deactivate the feature.
Presently, individuals can make numerous contactless transactions under £100 in a day, but if the cumulative amount surpasses £300, entering a PIN may be necessary.
As part of the rule adjustment, companies will also have the flexibility to reconsider this provision. The FCA initially introduced these proposals in a letter to the Prime Minister in January, followed by a consultation period until mid-October.
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The contactless limit started at just £10 in 2007, then increased to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020, and finally to £100 in 2021.
According to the FCA, approximately 85% of UK residents use contactless card payments monthly.
David Geale, the FCA’s executive director of payments