The Financial Conduct Authority (FCA) has published an engagement paper examining whether the UK’s contactless card payment limit should be removed or increased, with a view to giving consumers and merchants more flexibility while supporting UK economic growth. The review also considers making the regulatory approach less prescriptive, potentially enabling new payment methods and fraud prevention solutions, while remaining consistent with firms’ obligations to deliver good outcomes under the Consumer Duty. Options include allowing firms that use technology to reinforce strong fraud controls to set their own contactless limits, similar to the approach in the United States. The FCA will focus on consumer protection if limits change, noting that existing legislation requiring firms to reimburse consumers for unauthorised payment fraud (for example where cards are lost or stolen) will remain in place. The FCA cited that 85% of people in the UK make contactless card payments each month and referenced UK Finance analysis showing fraudulent contactless spend of GBP 41.5m in 2023, up 19% from 2022, while describing contactless fraud as a small part of overall payments fraud. Feedback on the engagement paper closes on 9 May 2025.
Financial Conduct Authority 2025-03-13
Financial Conduct Authority seeks feedback on removing or increasing the UK £100 contactless payment limit
The Financial Conduct Authority (FCA) released a paper exploring changes to the UK's contactless card payment limit to enhance flexibility and support growth. It suggests a less prescriptive approach, allowing firms with strong fraud controls to set their own limits, while ensuring consumer protection and reimbursement for unauthorised fraud. The FCA notes 85% of UK residents use contactless payments monthly, with fraudulent spend reaching GBP 41.5m in 2023.