The Financial Conduct Authority has published proposals for consultation that would give card providers flexibility to set contactless payment limits for their cards and customers, enabling contactless payments for larger purchases rather than operating to a single FCA-set cap. The proposals also encourage firms to continue offering customers the ability to adjust personal contactless limits or switch off contactless functionality. The FCA notes that contactless payments would retain the same protections as other card payments, including requirements on banks and payment firms to reimburse unauthorised fraud such as where a card is lost or stolen. It cites UK Finance’s Annual Fraud Report 2025, which estimates contactless fraud at around 1.3p per £100 spent on contactless transactions compared with 6p per £100 for all unauthorised fraud, and indicates that based on industry feedback it anticipates most firms will continue to implement the £100 limit in the time being. The work is positioned as part of the FCA’s wider programme of nearly 50 fast-tracked measures to support innovation and growth, alongside the Consumer Duty. The consultation is open until 15 October 2025 and is set out in the FCA’s Quarterly Consultation Paper.
Financial Conduct Authority 2025-09-09
Financial Conduct Authority consults on letting card providers set their own contactless payment limits beyond the £100 cap
The Financial Conduct Authority (FCA) has proposed allowing card providers to set their own contactless payment limits, enabling larger purchases without a single FCA-set cap. The proposals maintain existing fraud protections and suggest most firms will retain the £100 limit for now. This initiative is part of the FCA's broader programme to support innovation and growth.