Tap and go: £100 contactless card limit set to be scrapped
From £10 to unlimited?
The Financial Conduct Authority (FCA) has confirmed that from March 2026, banks and card providers will be free to set their own maximum contactless limits — or remove them altogether.
The watchdog says firms with strong fraud controls will be able to respond to “changing consumer demands, inflation and new technology.” Customers may also be given the option to set their own personal limit, or switch off contactless entirely.
Contactless cards were first introduced in 2007 with a £10 cap. The ceiling has risen steadily — £15 in 2010, £20 in 2012, £30 in 2015, £45 during the Covid pandemic, and £100 since October 2021.
“Favoured way to pay”
David Geale, FCA executive director of payments and digital finance, told the BBC’s Today programme: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
He said rigid limits could “slow things down” and that banks should be able to tailor limits to their customers.
Hospitality welcomes change
Kate Nicholls, chair of UKHospitality, said the move would be a boost for businesses: “Making life easier for consumers is a positive for any hospitality and high street business. Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences.”
Concerns over fraud and spending
While smartphone payments already allow unlimited transactions thanks to biometric security, critics warn that higher card limits could make stolen cards more attractive to thieves.
The FCA insists protections remain in place, including PIN prompts after consecutive taps and reimbursement for unauthorised fraud.
But its own consultation showed 78% of consumers did not want the £100 limit lifted. Academics and charities have raised concerns that unlimited spending could encourage debt, or expose victims of financial abuse to greater risk if abusers gain access to their cards.
What happens next
The FCA says it does not expect banks to raise limits immediately in March, but the flexibility will be there. Other countries, including Canada, Australia and New Zealand, already allow industry to set contactless limits.
The changes are part of a wider package of 50 measures the FCA outlined to the Prime Minister earlier this year, aimed at supporting economic growth and digital innovation.
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