Will Contactless Card Payments in UK Soon Have No Limit?

Contactless card payments in the UK may soon move beyond the £100 ceiling, with the Financial Conduct Authority (FCA) proposing new rules that would let banks and payment providers decide their own limits.

If adopted, the change could mean that entering a four-digit PIN becomes even less common, as higher-value transactions such as weekly supermarket bills or family meals could be completed with a single tap.

The proposal aligns card payments with digital wallets on smartphones, which already have no transaction cap due to biometric security features. The FCA said the plan reflects evolving consumer habits and rising costs over time.

When contactless cards were first introduced in 2007, the cap stood at £10. The limit rose steadily — £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020 during the Covid pandemic, and £100 in October 2021. The latest review could push boundaries further, possibly taking effect early next year.

Every increase has raised fears about theft and fraud. Currently, consumers may be asked for a PIN if several consecutive taps are made, or if the combined total exceeds £300. FCA analysis acknowledged that losses could climb if limits rise but noted that fraud detection systems are improving.

David Geale of the FCA stressed that consumer protection remains in place: “People are still protected. Even with contactless, firms will refund your money if your card is used fraudulently.”

Many banks already let cardholders lower their personal limits or switch off contactless entirely. Under the new plan, providers could also offer customers the option to set individual caps.

Public opinion remains divided. In a consultation, 78 per cent of consumers opposed changing the current £100 rule.

In Sevenoaks, 24-year-old Demi Grady said she rarely carries a card, preferring her phone for payments. “I was in London the other day, my phone died and I couldn’t pay for stuff because I couldn’t remember my card details,” she said.

Her mother Carrie prefers cards but said she would be uneasy if limits were removed: “It would worry me more than be of benefit if they were to lose the £100 limit.”

At Harveys Menswear, customer Robert Ryan described the PIN prompt as a spending check. “It gives me a bit of a prompt to make sure I’m not overspending on my tap-and-go,” he said. Shop owner Richard Staplehurst added that while most of his customers pay by card or device, retailers remain cautious about liability in fraud cases.

The FCA noted that the proposal ties into the government’s broader effort to stimulate the UK economy by easing payment restrictions. Similar systems operate in countries such as Canada, Australia, and New Zealand, where industry sets its own limits.

The consultation will run until October 15, with implementation possible in 2026 if regulators and providers agree.