FCA mulls removing £100 contactless cap

The Financial Conduct Authority (FCA) is exploring potential changes to contactless payment limits in the UK, aiming to benefit consumers, merchants, and economic growth.
Families and businesses across the country could benefit from greater choice, flexibility and smoother purchases, under proposals being considered by the FCA.
Making regulation less prescriptive would also give firms greater control and could promote innovative payment methods or fraud prevention solutions.
This forms part of the work, announced in January in a letter to the Prime Minister to support growth.
One option put forward is to allow firms, who use technology to reinforce strong fraud controls, to set their own limits as happens in the United States.
Any changes would need to support good customer outcomes as required by the Consumer Duty.
David Geale, executive director of payments and digital assets at the FCA, said: “Currently 85% of people in the UK make contactless card payments each month. This is the perfect opportunity to explore whether we can improve and increase trust in the UK’s payments system.
“We’ve worked fast to progress this work which is one of around 50 measures we put forward at the start of the year to help support economic growth across the UK and, in turn, improve lives.”
Economic secretary to the Treasury, Emma Reynolds, said: “Every regulator has a part to play in the collective mission to drive growth through our Plan for Change, which puts more money into working people’s pockets.
“The FCA’s review of the contactless payment limits, including removing the £100 limit on individual payments, is a welcome step to ensure that families can safely benefit from more flexibility when making purchases.”
The FCA will focus on how consumers are protected in the case of any changes to contactless limits. Existing legislation requiring firms to reimburse consumers in cases of unauthorised payment fraud, for example when their cards are lost or stolen, will remain in place.
Feedback to the engagement paper closes on Friday 9 May 2025.