Banks and payment providers will be able to set their own contactless limits from March 19, 2026 – here is what it means for you
Millions of shoppers will soon see big changes to contactless payment card limits under plans announced by the financial regulator.
The contactless limit is currently set at £100 – for anything above this, you normally need to enter your four-digit PIN. But the Financial Conduct Authority (FCA) has confirmed that banks and payment providers will be able to set their own limits from March 19, 2026.
Firms are also being encouraged to let customers set their own limit, or turn contactless off altogether. Many card providers already allow customers to adjust their personal contactless limit, or turn off the function altogether.
Under the current rules, you can normally make multiple contactless payments under £100 in a single day – however, you may be asked to enter your PIN if the purchases add up to over £300.
Under the rule change, firms will also have the flexibility to consider changing this if they want to. The FCA proposals were first announced in a letter to the Prime Minister back in January, and were subsequently put out for consultation until mid-October.
The contactless limit was set at just £10 when it was introduced in 2007, before rising to £15 in 2010, then £20 in 2012, to £30 in 2015, then to £45 in 2020 and £100 in 2021.
The FCA previously said it estimates 85% of people in the UK make contactless card payments each month.
David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
Kate Nicholls, chairwoman of UKHospitality, said: “Making life easier for consumers is a positive for any hospitality and high street business, and I’m pleased the FCA is bringing forward this change.
“Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences for consumers. While many people still prefer to use cash or chip and Pin, this change adds much-needed flexibility for providers and consumers.”
Jana Mackintosh, managing director of payments and innovation at UK Finance, said: “We welcome the FCA’s move to give banks and payment providers greater flexibility over contactless limits in the future.
“Contactless is a very popular and secure way to pay. While we do not expect to see any immediate change to the £100 contactless limit, any changes made in the future will be done carefully and ensure strong security and fraud controls remain in place.”
