UK banks set to gain flexibility on contactless limits as FCA signals wider options
Regulator to allow firms to raise or remove the £100 cap on single contactless payments from March 2026, with encouragement to let customers tailor limits while prioritizing security.
Millions of people could set their own contactless payment limits or even have no limit at all under new Financial Conduct Authority rules that would give banks and card providers greater leeway to decide the cap for single payments. The changes, expected to take effect from March 2026, would allow firms to set a maximum or unlimited amount for a single contactless transaction without requiring a four-digit PIN, provided they maintain strong fraud controls. The FCA also urged firms to offer customers the option to set their own limits or switch off contactless entirely.
Some banks already give customers this flexibility, but the regulatory move would make it standard practice across the industry. The FCA’s plan comes despite its own survey showing limited appetite among consumers and industry respondents for moving away from the current £100 limit. The regulator said it did not anticipate immediate changes in March, but banks would have the option to implement changes as they see fit. When contactless payments began in 2007, the limit was £10 and rose over time to £100 in October 2021. Smartphone payments already permit spending without a PIN, and they are protected by built‑in security features such as biometrics.
The shift toward potentially unlimited limits has raised concerns among consumer groups and researchers that easier access could lead to more impulsive spending, especially where borrowed money is involved. Some argue that high-value tap payments could become a magnet for thieves or fraudsters if protections are not maintained. There are already safeguards in place, such as prompts to enter a PIN after a number of consecutive contactless transactions. If a card is lost or stolen, banks still reimburse unauthorised transactions under standard protections.
David Geale, executive director of payments and digital finance at the FCA, said: "Contactless is people's favoured way to pay. The system works, but rigid limits could slow things down. We want to give banks and payment firms greater flexibility to set their own approach to contactless payment, where they see low risk of fraud. What we’re really encouraging is that they’ll open up that flexibility for customers to set their own limits." He spoke on the BBC’s Today programme, emphasising that the aim is to balance convenience with security, not to erode protections.
Canada, Australia and New Zealand are among countries that already allow industry to set contactless limits, a point cited by FCA officials as they outlined the international context. Jana Mackintosh, managing director of payments and innovation at UK Finance, noted that any future changes would be pursued cautiously and with strong security and fraud controls in place. The trade body represents the banks involved in the process.
The FCA’s own consultation highlighted consumer caution: a sample of respondents showed 78% did not want any change to the current limits. Critics warn that unlimited contactless spending could enable rapid, high-value purchases or cash outlays, particularly if a card is compromised. Financial abuse charities have warned that unlimited tap payments could allow abusers to drain a survivor’s bank account with little or no warning, underscoring the need for ongoing checks and monitoring.
In parallel with the debate over card limits, Cash Access UK announced the opening of its 200th banking hub in Billericay, Essex, as part of broader efforts to safeguard access to cash as some bank branches continue to shrink. The hubs are intended to provide communities with safe places to withdraw cash and access essential financial services even as online and branch-based options evolve.
For consumers who are unsure how a change would affect them, banks are expected to communicate any changes clearly under existing consumer duty rules. Most firms have already implemented or are testing personalisation features that allow customers to tailor their contactless settings in mobile banking apps or on their cards. If a bank chooses to raise the limit above £100, it would still be required to maintain robust fraud prevention mechanisms and to notify customers of any changes.
The policy shift reflects a broader push to modernize payments while preserving consumer protections. Regulators say the aim is to foster innovation and efficiency in everyday payments, not to remove safeguards that prevent unauthorised or fraudulent use. As banks and payment firms prepare for March 2026, shoppers should expect more options to tailor how they pay, alongside continued reminders about responsible use and the protections available if something goes wrong.
Image availability note: The BBC image used earlier in the article illustrates the evolving landscape of contactless payments, while additional visuals from partner outlets may accompany other versions of this story. The images linked above are provided for context and illustrate related themes in the industry. The article remains focused on the regulatory framework and market implications rather than any single product or brand.
Overall, the FCA’s plan aims to strike a balance: empower firms to tailor the payment experience to their risk models while ensuring customers retain confidence that their money remains secure and recoverable in cases of loss or fraud. Whether the industry moves quickly or opts for a more gradual approach, the coming months will reveal how much flexibility banks ultimately embrace and how consumers respond to new options for managing contactless payments.
As the discussion unfolds, banks and policymakers alike emphasize that any changes must be implemented with care to avoid undermining the protections that have helped consumers feel comfortable using contactless payments for everyday purchases. The industry’s experience to date suggests that many customers value speed and convenience, a trend regulators say will continue to drive how limits are set in the future. The FCA will continue to monitor developments as firms decide how to calibrate limits for different customer segments and risk profiles, while ensuring that customers still have the option to opt out of contactless payments if they prefer.
Looking ahead, the combination of consumer demand, fraud controls and the evolving payments landscape will shape how aggressively firms push the envelope on contactless limits. The FCA’s stance is clear: flexibility where risk is low, strong protections where risk is higher, and clear communication to consumers about any changes that affect how they pay. In the short term, many banks are likely to maintain current limits while exploring the best way to offer personalized options to their customers. In the longer term, the market could see a more tailored approach to contactless payments that reflects individual spending patterns and risk tolerance, with continued emphasis on safeguarding consumers from fraud and financial abuse.
