On 19 December 2025, the Financial Conduct Authority (FCA) published a statement setting out that greater flexibility is to be given for setting contactless limits.

Overview

The FCA set out that banks and payment providers with strong fraud controls will be able to set their own limit for contactless payments and that they are also being encouraged to let customers set their own limit, or turn contactless off altogether.

However, the FCA also made clear that existing consumer protections will remain in place and consumers must be reimbursed in unauthorised fraud cases, such as if their card is lost or stolen. 

Next steps

The FCA further explained that rule changes take effect in March 2026, after which it will be up to firms if and when they take up the greater flexibility, but that those that do will need to communicate the changes clearly to their customers.