UK to Scrap £100 Contactless Card Payment Limit from March 2026
From 19 March 2026, UK banks and card providers will be allowed to set their own maximum limits for contactless card payments, effectively removing the current £100 per-transaction cap. While the existing £300 cumulative limit for multiple contactless taps remains, providers may also choose to lift this limit.
The Financial Conduct Authority (FCA) explains that these changes aim to help banks respond to consumer demand, inflation, and advances in technology. Customers will have the option to set their own limits or disable contactless payments altogether for their cards.
In the short term, most providers are expected to maintain the existing restrictions. Despite the increased flexibility, protections remain in place, including reimbursement for unauthorized fraud and ongoing fraud controls. It is important to note that these changes apply only to card payments; mobile payments are not subject to any cap.
Barclays data indicate that 95% of eligible payments in the UK are now contactless. A recent FCA survey showed that 76% of consumers believe the contactless limit should be £100 or lower. Since contactless payments were introduced in 2007 at a £10 limit, this amount has gradually increased, reaching £100 by October 2021.
UKHospitality has welcomed the removal of the cap as a positive step, though some economists have raised concerns that easier payments might encourage overspending.
