The UK Financial Conduct Authority has issued new standards giving banks and payment providers with strong fraud controls greater flexibility to set their own contactless payment limits, while encouraging firms to allow customers to set a personal limit or switch contactless off. The changes are framed as removing prescriptive requirements while keeping existing consumer protections unchanged. Firms must maintain strong fraud controls for contactless transactions, and consumers must still be reimbursed for unauthorised fraud, including where a card is lost or stolen. Providers that choose to adopt higher or different limits will need to communicate changes clearly to customers, including in line with the Consumer Duty. The FCA cited industry research from Barclays indicating that almost 95% of eligible in-store card transactions were contactless in 2024, and noted that industry feedback suggests most firms expect to keep existing limits for the foreseeable future. The rule changes take effect in March 2026, after which firms can decide if and when to implement any changes to their contactless limits.
Financial Conduct Authority 2025-12-17
UK Financial Conduct Authority lets banks and payment providers set their own contactless payment limits from March 2026
The UK Financial Conduct Authority has introduced new standards allowing banks and payment providers with robust fraud controls to set their own contactless payment limits, while maintaining consumer protections. Firms are encouraged to let customers set personal limits or disable contactless payments. The changes, effective March 2026, require clear communication to customers, aligning with the Consumer Duty.