Big news for contactless card users! The Financial Conduct Authority (FCA) is considering shaking things up by raising or possibly scrapping the contactless limit altogether. Currently, you can tap for payments up to £100 without using your PIN, but this could soon change.
Why the potential shift? As payment tech gets smarter and fraud defences get tighter, the FCA wants to give banks and card companies the freedom to set their own limits, much like in the US. This could mean more convenience for you, with limits tailored to your needs.
The FCA has emphasised that despite any changes, your money remains safe. Even if your card is used fraudulently, firms are obligated to refund you. Many card providers already allow customers to set their own contactless limits or disable the feature, and this flexibility is strongly encouraged.
Reflecting on the history of contactless limits, they’ve come a long way since starting at £10 back in 2007, reaching £100 in 2021. Under current rules, several contactless payments are allowed under £100, but spending over £300 total in one day may require a PIN.
But don’t worry, changes won’t happen overnight. The FCA’s new guidance is still in the consultation phase, inviting feedback until October 2025. Meanwhile, enjoy the perks of contactless shopping with peace of mind that your transactions are protected.
Stay tuned for updates as this story develops!