The change to payments will affect anyone with a bank card
Consumers have been urged to check their bank security settings ahead of a major change in payment rules. As part of an extension to contactless transactions, the existing £100 ceiling on contactless payments will be scrapped from March 2026. Under the new rules, shoppers will have the ability to set their own maximum threshold or have no limits at all on contactless card transactions without entering their PIN.
While this development could mean greater convenience for buyers making purchases, the change is also serves as a reminder to check over what account protections you have in place. Nicola Morgan, financial services specialist at comparison website confused.com, said: “For many, contactless has become the simplest way to pay, and giving banks and customers more flexibility to set their own limits could make everyday purchases quicker and more convenient.
“But it’s important to balance convenience with security. Contactless payments don’t require a PIN, which means they’re easy to use, but that also means it’s vital to manage your own settings carefully.”
Ms Morgan offered several tips for maintaining keeping your transactions secure when making payments, particularly if you opt for a high contactless threshold or decide to have none at all. Among her advice is using a mobile wallet where possible.
She said: “Paying with your phone often includes biometric security (like fingerprint or face ID), adding an extra layer of protection for bigger spends. Our research shows over one in three (35 percent) UK adults use Apple pay or Google pay for everyday spending.”
Getting a refund from your bank
She also recommended getting clued up on your bank’s fraud protection policies. The expert said: “Many banks already reimburse unauthorised contactless transactions, but it’s worth double-checking what’s covered and how quickly you’d be refunded.”
Most banks will let you switch off contactless payments entirely if that’s what you prefer, so it’s worth finding out how to do this. Ms Morgan also urged people to get into the habit of keeping tabs on their bank account.
She said: “Checking your transactions regularly, especially after shopping trips, this means you can spot anything unusual quickly.” Another danger of scrapping the contactless payment cap is that shoppers might accidentally pay more than they mean to themselves.
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Brean Horne, personal finance expert at Investing Insiders, explained: “Increasing the current contactless card spending limit from £100 could help customers make payments more seamlessly amid the rising cost of living. However, spenders need to be cautious and avoid the urge to splurge.”
“A higher contactless card payment limit could encourage customers to overspend and make impulse purchases.” To prevent this happening, Ms Horne suggests putting a budget in place to keep your spending under control.
There’s lots of assistance available online for this very purpose. The expert said: “There are lots of tools available to help create and manage a budget effectively.
“For instance, budgeting apps are a great way to track your expenses, find ways to cut costs and set spending limits.” Your bank might offer budgeting tools to help manage your spending.
Plan ahead
Ms Horne said: “Planning is also a brilliant tool to complement a budget. Making a note of what you intend to purchase before going into a store, supermarket or even an event, will help you focus on the essentials and avoid impulse buys.”
Turning to payment security, the finance expert highlighted some precautionary steps. She warned: “An increase in the contactless card limit could cause customers to lose more money if their card is stolen. Enabling spending notifications on a smartphone will immediately alert customers to any suspicious transactions.
“Regularly monitoring bank statements will also help spot fraudulent payments. Taking action quickly is key for anyone who suspects that their card is being used fraudulently.
“Freezing the card immediately will prevent transactions from going through. It’s also vital to contact the payment provider so that they can investigate and seek to retrieve any money as soon as possible.”
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