"From March, banks and card providers will be allowed to set their own maximum limits for contactless payments, including the option of removing the cap altogether, without requiring customers to enter their PIN. The Financial Conduct Authority (FCA) has also encouraged firms to give customers greater control, such as allowing them to set their own limits or disable contactless payments entirely."
"Contactless payments were first introduced in the UK in 2007 with a £10 limit. That ceiling has steadily risen over the years, reaching £100 in 2021 following a series of increases accelerated by the Covid pandemic. By contrast, smartphone payments using biometric security such as fingerprint or facial recognition already allow unlimited spending. Despite the regulatory change, appetite for higher limits appears muted."
The Financial Conduct Authority will allow banks and card firms from March to set or remove contactless payment limits, enabling single-tap transactions above £100 without a PIN. Firms are encouraged to offer customer controls like adjustable limits or the ability to disable contactless payments. The FCA does not expect immediate widespread increases and intends firms to adapt products over time. Contactless limits rose from £10 in 2007 to £100 in 2021, while smartphone biometric payments already permit unlimited spending. An FCA survey found 78% of consumers oppose raising the £100 cap, citing fraud, theft and accidental overspending, and experts warn of increased criminal attractiveness despite safeguards.
Read at Business Matters
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