Consumers could benefit from the convenience of contactless payment when making larger payments, under proposals being consulted on by the FCA.
The FCA wants to give card providers the flexibility to decide the right limit for them and their customers.
Many card providers already offer customers the ability to adjust their personal contactless limits or turn off contactless functionality on their card altogether. The FCA is encouraging firms to continue to offer their customers this choice.
David Geale, executive director of payments and digital finance at the FCA, said:
'We‘re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation. While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers.
'People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.'
Contactless card payments come with the same protection as any other card payment, meaning banks and payment firms must reimburse unauthorised fraud cases, such as when somebody’s card has been lost or stolen. UK Finance’s Annual Fraud Report 2025[1] estimates that contactless fraud rates are currently low at circa 1.3p per £100 spent on contactless transactions, compared to 6p per £100 for all unauthorised fraud.
This work is one of around 50 measures that the FCA outlined in a letter to the Prime Minster[2] in January to support economic growth and prioritise digital solutions.
The proposals are out for consultation until 15 October 2025.
Notes to editors
- Read the contactless payments consultation in our Quarterly Consultation Paper[3] (PDF)
- We received nearly 1,300 responses to the contactless payments Engagement Paper[4].
- Based on industry feedback, the FCA anticipates most firms will continue to implement the £100 limit in the time being.
- Contactless payment fraud is where a contactless card is lost or stolen and then used by someone other than the cardholder to pay for goods and services at a contactless terminal.
- With the Consumer Duty[5] in place and in support of the UK government’s growth mission, the FCA is reviewing these rules as part of the nearly 50 fast-tracked measures to support innovation and growth and remove unnecessary regulatory barriers.