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FCA Lifts £100 Contactless Cap; Banks Warned on Fraud

3/20/2026

29 4 Full Breakdown

Summary

Story summary

Financial Conduct Authority (FCA) will remove the £100 cap on contactless card payments on March 19, 2026, allowing banks to set their own limits.
Barclays and HSBC plan to maintain the £100 limit initially.
The FCA says existing fraud protections will remain, ensuring consumers are reimbursed for unauthorized transactions.
Experts warn higher limits could increase fraud risk and urge banks to strengthen fraud-detection systems.

History

Historical Context

The UK introduced contactless payment technology in 2009, transforming consumer transactions. By 2019, contactless payments reached £7.75 billion, reflecting rapid adoption. The Financial Conduct Authority's decision to raise the limit to £100 in 2021 highlights the shift towards digital payments, while also raising concerns about fraud, necessitating enhanced security measures from banks like Barclays and HSBC.

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Story summary

Financial Conduct Authority (FCA) will remove the £100 cap on contactless card payments on March 19, 2026, allowing banks to set their own limits.
Barclays and HSBC plan to maintain the £100 limit initially.
The FCA says existing fraud protections will remain, ensuring consumers are reimbursed for unauthorized transactions.
Experts warn higher limits could increase fraud risk and urge banks to strengthen fraud-detection systems.

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