The £100 limit on contactless debit and credit card payments will be scrapped from Thursday, 19th March. Banks and payment providers will no longer be legally required by the Financial Conduct Authority (FCA) to set the £100 limit on contactless card transactions.
Announcing the change to its legislation, the FCA said, “Banks and payment providers must have strong fraud controls when processing contactless transactions. The greater flexibility will incentivise firms to step up their fraud prevention, giving consumers greater protection and peace of mind.”
Why has the FCA removed the £100 contactless card payment limit?
The FCA has scrapped the limit on contactless transactions to provide more flexibility for customers who increasingly prefer the ease of ‘tapping’ to pay for goods and services, rather than using the ‘chip and PIN’ alternative. According to the FCA, “around 85% of people in the UK make contactless card payments each month”.
Last year, the regulator began examining whether removing the contactless limit would benefit consumers and businesses. It looked at whether removing the limit could provide a smoother transaction experience, improve speed and comfort, and positively impact economic growth. It went on to conclude that the limit would be removed from March 2026, with the executive director of payments and digital finance, David Geale, confirming, '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.'
Contactless payments made with Apple Pay, Google Pay, or Samsung Pay are currently not subject to the same limits as card payments, as they use biometric checks (facial recognition or PINs) to authorise payments.
What does scrapping the contactless card payment limit mean for consumers?
The limit for contactless card payments has changed over the years, from as low as £10 in 2007 to its current limit of £100. The limit provides some reassurance to consumers against fraud and theft, as the physical payment card generally cannot be used beyond the limit without entering a PIN if lost or stolen. Many payment cards also apply limits when multiple transactions are made within a short period, even if each payment is below the £100 limit.
Banks and payment providers will be able to set or remove limits based on their own security and consumer preferences. So even though the FCA has removed the legal requirement for payment providers to cap contactless payments, the £100 limit is likely to remain beyond the 19th March for many consumers.
The FCA have stated that banks and payment providers will be required to “support good customer outcomes as required by the Consumer Duty”, a regulation that, amongst other things, requires firms to put their customers’ needs first.
Is my contactless payment limit going to change?
At the time of writing, a number of banks, including Lloyds, TSB Bank, NatWest, Barclays and Santander, have indicated that the £100 contactless limit will remain. So, for the time being, it looks like most consumers will not see any change to the £100 limit on contactless card payments.
While customers are unlikely to see limits increased or removed for now, those who would prefer limits below £100 may be able to set a lower personal limit to suit their needs - some banks even allow customers to switch off the contactless facility altogether.
Many digital banks will also keep the £100 limit on contactless payments in place - Monzo and Starling both apply the £100 limit while giving customers the option to reduce it or switch off contactless payments altogether. Revolut, on the other hand, does not offer the option to reduce its £100 limit, which it also plans to keep in place despite the regulator’s change.
Reviewing your contactless card payment limit
Although most payment providers are unlikely to scrap the £100 limit on contactless transactions straight away, the option is now open for them to do so. As a customer, you can expect to be notified of any such change if your payment provider implements it, so keep an eye out. If changed, it would be wise to reflect on how this may affect you personally.
While some people will relish the ease of ‘tapping’ to pay for higher-value transactions, others may feel less secure as a result. Having no limit on contactless payments may also increase the likelihood of higher-value impulse buying - the current limit slows the transaction and arguably gives you a few more seconds to consider your purchase than you might if you can simply 'tap to pay'.
Although a very small percentage of card fraud results from theft, removing limits may incentivise criminals, and this will likely be a key consideration for payment providers as they reflect on whether to remove the limit at all. If your provider removes the £100 automatic limit for contactless payments and you would like to keep it, check whether you can set your own personal limit. Importantly, any transactions made unlawfully using a lost or stolen card are usually protected by your payment provider.
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