People could benefit from the convenience of contactless payment
when making larger payments, under proposals being consulted on
by the Financial Conduct Authority (FCA).
The regulator wants to give card providers the flexibility to
decide the right limit for them and their customers.
Many card providers already offer customers the ability to adjust
their personal contactless limits or turn off contactless
functionality on their card altogether. The FCA is encouraging
firms to continue to offer their customers this choice.
David Geale, Executive Director of Payments and Digital Finance
at the FCA, said:
“We‘re seeing smarter payment technology and more
well-established fraud controls, so it's the right time to let
firms tailor contactless payments to fit their customers' needs
and drive innovation. While we wouldn't expect to see immediate
changes to limits by firms, they would have the flexibility to
make payments more convenient for customers.
“People are still protected; even with contactless, firms will
refund your money if your card is used fraudulently.”
Contactless card payments come with the same protection as any
other card payment, meaning banks and payment firms must
reimburse unauthorised fraud cases, such as when somebody's card
has been lost or stolen. UK Finance's Annual Fraud Report 2025
estimates that contactless fraud rates are currently low at circa
1.3p per £100 spent on contactless transactions, compared to 6p
per £100 for all unauthorised fraud.
This work is one of around 50 measures that the regulator
outlined in a letter to the Prime Minster
in January to support economic growth and prioritise digital
solutions.
The proposals are out for consultation until 15 October
2025.
Notes to editors
- Read the contactless payments consultation in our Quarterly Consultation
Paper.
- We received nearly 1,300 responses to the contactless
payments Engagement Paper.
- Based on industry feedback, the FCA anticipates most firms
would continue to implement the £100 limit for the time being.
- Contactless payment fraud is where a contactless card is lost
or stolen and then used by someone other than the cardholder to
pay for goods and services at a contactless terminal.
- With the Consumer Duty in place and in support of the UK
government's growth mission, the FCA is reviewing these rules as
part of the nearly 50 fast-tracked measures to support innovation
and growth and remove unnecessary regulatory barriers.
