On 14 March 2025, the Financial Conduct Authority (FCA) issued an Engagement Paper on contactless payment limits.

Background

The FCA currently set limits on the value and number of contactless payments that can be made before requiring authentication. Most banks and other payment service providers (PSPs) default to the regulatory limits, but they can set their own contactless limits within these if they choose.

Engagement

The Engagement Paper sets out how the FCA could approach contactless payment limits in the future, to give greater flexibility to PSPs, consumers and businesses to decide contactless limits. These options include allowing PSPs to take a risk-based approach to contactless payments, as well as significantly increasing the existing regulatory contactless limits, or even removing them entirely. 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.

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.’

Next steps

Feedback to the Engagement Paper closes on Friday, 9 May 2025.