Big changes are coming to how we pay, and it’s about to get a lot easier to spend more with just a tap. Starting March 19, the £100 limit on contactless card transactions is being scrapped, thanks to new rules from the Financial Conduct Authority (FCA). But here’s where it gets controversial: banks and payment providers with strong fraud controls will now have the power to set their own limits. Will this lead to safer transactions, or could it open the door to more fraud? Let’s dive in.
Currently, shoppers can spend up to £100 per transaction using contactless cards, but this cap has often felt restrictive, especially as inflation rises and consumer habits evolve. The FCA’s move aims to give businesses the flexibility to adapt to these changes, whether by increasing limits or even letting customers set their own. And this is the part most people miss: firms can also allow customers to turn off contactless entirely, a feature already offered by many high street banks.
The rise of contactless payments has been nothing short of meteoric. According to Barclays, 94.6% of eligible in-store card transactions were contactless in 2024—a staggering jump from just a few years ago. In fact, last year saw 10 times as many contactless transactions per month compared to 2015. But it’s not just about single transactions; there’s also a cumulative limit of £300 or five consecutive taps before strong customer authentication (like a PIN) is required. Under the new rules, even this cumulative approach could change, giving firms even more control.
The FCA argues that this flexibility will incentivize companies to beef up their fraud prevention measures, ultimately protecting consumers. Existing safeguards, like reimbursements for unauthorized transactions, will stay in place. But here’s the question: will this shift make payments more convenient, or will it leave some consumers vulnerable? Let us know what you think in the comments.
This change is part of a broader effort to support economic growth, with the FCA outlining around 50 measures in a January letter to Prime Minister Sir Keir Starmer. The proposals were open for consultation until October 15, and while the FCA expects most firms to stick with the £100 limit for now, the door is wide open for future adjustments.
David Geale, the FCA’s executive director of payments and digital finance, summed it up: “Contactless is people’s favored way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.” Kate Nicholls of UKHospitality echoed this sentiment, noting that lifting the limit could mean quicker, smoother experiences for customers. Meanwhile, Jana Mackintosh of UK Finance welcomed the move but emphasized that any changes will be made carefully, with security remaining a top priority.
So, what do you think? Is this a step forward for convenience, or a risky gamble with fraud prevention? Share your thoughts below—we’d love to hear your take on this hot-button issue.
