UK’s FCA considers raising or removing contactless payment limits
The UK’s Financial Conduct Authority (FCA) is reviewing the current contactless payment limits, with the regulator considering options including increasing the current £100 limit or potentially removing it altogether.

The FCA is seeking feedback on the proposed changes by 9 May
The goal of this initiative is to offer “greater flexibility” to consumers, payment service providers (PSPs), and businesses to “decide contactless limits which work for them, while also reducing the risks of fraud”, says the regulator.
Since their introduction in 2007, contactless payments have become a dominant method for card transactions in the UK, with 85% of people using them at least once a month, according to a UK Finance report.
Currently, a single contactless transaction is limited to £100, with a cumulative cap of £300 across several transactions, or a maximum of five consecutive contactless payments before requiring some form of authentication.
The FCA is now exploring adjusting these limits or removing them entirely, allowing PSPs to set personalised limits for each consumer based on their “risk appetite”. By bringing in such changes, the FCA aims to “smoothen the consumer journey by not having to authenticate via a PIN as frequently, while limiting the possibility of fraud”.
In addition, the regulator is considering a new risk-based exemption that would give PSPs greater control over contactless limits, provided “they can achieve low rates of fraud”.
Another option under review is “substantively” relying on the Consumer Duty, introduced in 2023, which sets the standard of care that financial institutions must offer customers in retail markets, rather than “setting bespoke rules for contactless limits”. This move, the watchdog argues, could “give firms greater flexibility, while still ensuring that they consider the financial objectives of their customers”.
The FCA is seeking feedback from consumer groups, banks, PSPs, retailers, and other stakeholders on the proposed changes by 9 May 2025.
The contact less it such a good system for me.you can increase it to £200.it was very convenient for me one day when l forgot my wallet.its safe cause l use finger print to unlock.
An increase, perhaps even to £150, would be reasonable, but the ability to empty my bank account in a single transaction will make theft of cards significantly more attractive to criminals. This will be REGARDLESS of individuals being able to set lower limits, because criminals know that most people will not bother to do so. Allowing large unverified (no pin) payment using a card would be a huge mistake. Being able to claim back from the bank (if such a claim is successful) is not going to prevent the stress of having to do so, or the additional cost of these claims being passed on to bank customers in higher charges.
If the FSA actually want feedback on this, is there an official route to do so. or has the decision already been made?