FCA to Remove Contactless Card Payment Limits from March 2026
The Financial Conduct Authority (FCA) will remove the current £100 single-transaction and £300 cumulative limits on contactless card payments, effective from March 2026. This change will allow banks to set their own payment limits for contactless transactions.
Currently, contactless payments are restricted to £100 per transaction and up to £300 cumulatively before verification is needed, with digital wallet payments having no such limits. After five contactless taps, verification is triggered. The FCA expects most banks and consumers to maintain or adjust limits as they see fit, noting that many consumers are satisfied with the current thresholds.
There are fraud concerns associated with increasing limits. Raising the limits to £150 single and £450 cumulative could result in up to a 131% increase in fraud over three years. However, banks are anticipated to introduce enhanced safeguards, including alerts, text or phone notifications for large transactions, and the ability to block cards when unusual activity is detected. Customers will also be able to set their own limits or disable contactless payments if preferred.
If a card is lost or stolen, customers are advised to report it promptly to avoid losses of up to £35. Unauthorised payments must be reimbursed by banks if reported within 13 months, unless the customer was complicit.
Data from Barclays in 2024 shows the average contactless payment is around £16.10, suggesting that even with increased limits, overall spending via contactless may not surge significantly. Banks will retain the ability to set guardrails to address fraud and spending concerns while providing customers with more flexibility in managing contactless payment limits.
