Changes to Contactless Payment Limits in the UK

On March 19, 2026, the Financial Conduct Authority (FCA) will officially abolish the £100 contactless payment limit that has been in place since 2021. This regulatory change allows banks and payment providers to set their own contactless thresholds, marking a significant shift in how consumers can manage their payment methods. The FCA's decision aims to provide greater flexibility for both financial institutions and consumers, enabling them to respond to evolving consumer demands and technological advancements.

New UK Rules for Debit and Credit Cards: How the March 19 Update Will Affect Your PaymentsLiverpool EchoBirmingham MailThe IndependentBirmingham Mail

The contactless payment limit has evolved significantly since its introduction in 2007, when it was initially set at £10. Over the years, this limit has been incrementally increased to £20 in 2012, £45 in 2020, and £100 in 2021. The latest change reflects the growing consumer confidence in contactless technology, with nearly 95% of eligible in-store card transactions being contactless as of 2024, according to Barclays.

New UK Rules for Debit and Credit Cards: How the March 19 Update Will Affect Your Payments

The FCA has emphasized that while banks can now adjust their contactless limits, they must maintain robust fraud prevention measures. Major banks such as Barclays, Lloyds, and HSBC have indicated that they plan to retain the £100 limit initially, allowing customers to set their own lower limits if desired. Personal finance expert Charlie Evans from Compare the Market has highlighted the potential budgeting implications of this change, noting that a significant portion of consumers sometimes regret spontaneous purchases.

Liverpool EchoBirmingham MailNew UK Rules for Debit and Credit Cards: How the March 19 Update Will Affect Your PaymentsThe IndependentBirmingham Mail

David Geale, executive director of payments and digital finance at the FCA, stated, "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." Meanwhile, banks are encouraged to inform customers clearly about any changes to their contactless limits.

Birmingham Mail

Consumer advocates have raised concerns regarding the potential for increased unplanned spending due to the removal of a universal limit. A survey indicated that one-third of Britons sometimes regret spontaneous purchases, with 14% stating that such spending affects their budget more than expected. Critics argue that while the flexibility is beneficial, it may lead to financial strain for some consumers.

Liverpool Echo

As banks review their policies regarding contactless limits, customers are advised to utilize banking apps to monitor their spending and set personal limits. The FCA's regulatory change is expected to prompt discussions within financial institutions about the future of contactless payments, with the possibility of varying limits becoming a standard practice.

Liverpool Echo

• “Charlie Evans, personal finance expert at Compare the Market, said: "The £100 contactless card limit is set to be lifted by the Financial Conduct Authority (FCA) on March 19.” — Charlie Evans, Personal Finance Expert

Liverpool Echo

This regulatory change represents a pivotal moment in the evolution of payment methods in the UK, balancing consumer flexibility with the need for responsible spending practices.

New UK Rules for Debit and Credit Cards: How the March 19 Update Will Affect Your Payments