Here is all you need to know
Soon millions of shoppers will see big changes to contactless payment card limits, as the financial regulator has announced new plans.
Currently, the contactless limit is set at £100 – for anything above this, you normally need to enter your four-digit PIN.
Banks and payment providers will be able to set their own limits from March 19, 2026, the Financial Conduct Authority (FCA) has confirmed
Many card providers already allow customers to adjust their personal contactless limit, or turn off the function altogether.
However, under the current rules, you can normally make multiple contactless payments under £100 in a single day, but you may be asked to enter your PIN if the purchases add up to over £300.
The FCA proposals were first announced in a letter to the Prime Minister back in January, and were subsequently put out for consultation until mid-October.
What you need to know as contactless card payment limit to be removed on March 19
Cap Removal: From March 19, the current £100 contactless payment limit will be abolished, allowing individual banks to set their own spending thresholds.
Consumer Control: Customers will have the power to set their own personal contactless limits or disable the feature entirely through their banking apps.
Security Protocols: To prevent fraud, a PIN is still required for single transactions over £100 or when cumulative daily spending exceeds £300.
Historical Growth: Since its 2007 debut at just £10, the contactless limit has been raised six times, reaching its most recent milestone of £100 in 2021.
FCA Mandate: The Financial Conduct Authority (FCA) decided to axe the limit following a public consultation, citing improved fraud prevention systems.
Widespread Adoption: Recent data shows that 85% of people in the UK now use contactless payments monthly, making it the nation’s preferred payment method.
Economic Benefits: Industry leaders from UKHospitality note that higher limits will streamline the customer experience and support high street businesses.
Measured Implementation: While the cap is being removed, UK Finance suggests banks will likely maintain the £100 limit in the short term to ensure continued security.
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