UK Plans to Raise or Scrap £100 Contactless Card Payment Limit

UK Plans to Raise or Scrap £100 Contactless Card Payment Limit

 

The UK’s Financial Conduct Authority (FCA) has proposed new rules that could allow banks and payment providers to raise – or even remove – the current £100 limit on contactless card payments. This means that larger purchases, such as a weekly supermarket shop or a family dinner, could be made with just a tap, without the need to enter a PIN.

When contactless was first introduced in 2007, the limit was £10. Over the years, it gradually increased, reaching £100 in 2021. If approved, the new plan could take effect early next year.

While the move reflects changing payment habits and aims to save time, reduce “payment friction,” and align cards with digital wallets (which already have no limits), concerns over fraud and theft remain. The FCA acknowledged that raising limits could increase fraud losses but stressed that banks would bear the burden, and consumers would still be refunded if their cards were misused.

Opinions are divided. Younger people, especially those aged 16–24, often rely on smartphones with fingerprint or facial recognition security, making unlimited payments routine. Others, however, see the £100 cap as a useful safeguard, even a budgeting reminder.

The FCA said any changes would be implemented cautiously and allow customers to set their own contactless limits if they prefer. It emphasized that the move also responds to the UK government’s push to stimulate economic growth by cutting unnecessary restrictions.

Countries like Canada, Australia, and New Zealand already let the industry set its own limits, and the UK could soon follow suit.