And the contactless card limit of pounds 100 will be removed

New regulations from the Financial Conduct Authority will allow consumers to determine their own contactless limits starting in March 2026

The regulator has confirmed that consumers will be able to pay with contactless cards over the current £100 limit.

The Financial Conduct Authority (FCA) has announced that starting in March 2026, banks and card companies will be permitted to give consumers the option to determine their own personal contactless limits. Additionally, customers will be able to completely disable contactless payments.

The average UK consumer's total contactless spending increased from 3,623 to 3,803 between 2023 and 2024, according to a recent Barclays survey.

"People's preferred method of payment is contactless," stated David Geale, the FCA's executive director of payments and digital finance. We want to ensure that our regulations offer choice and flexibility for businesses and consumers in the future. A "

Under the new regulations, people will still be protected because businesses will typically reimburse any money lost in the event that a stolen card is used to make contactless purchases.

According to the most recent Annual Fraud Report published by UK Finances, the trade association for the banking services sector, contactless fraud rates are estimated to be 1.3p per 100 spent.

According to the FCA, businesses that allow clients to choose their own contactless limits starting in the spring of 2026 must have effective fraud controls in place. This includes mechanisms for identifying and preventing contactless fraud.

After the regulator conducted a consultation to give consumers more control over their contactless limits and promote economic growth in the UK, the new regulations will go into effect.

The FCA's decision was applauded by Kate Nicholls, chair of UK Hospitality, a trade association for the hospitality industry.

"Lifting the limit can mean quicker and easier experiences for customers, and contactless has become the preferred payment method of choice for many people," she stated. A "

Higher contactless limits carry risks.

In 2007, contactless card payments were first made possible with a 10-card limit. This was increased to 15 in 2010, 20 in 2012, 30 in 2015, and 45 starting in 2020. In 2021, it was last raised to 100.

However, some scholars have expressed concern that increased contactless limits may encourage impulsive spending, which could lead to debt.

The director of personal finance at investment platform AJ Bell, Laura Suter, cautioned that the new regulations from March 2026 might enable card thieves to accrue significant expenses before a card is blocked.

But according to Suter, offering consumers the option to increase their contactless limits instead of making it mandatory provided an extra degree of security.

"People have more control when they can set their own limits or disable contactless completely, whether it's to prevent fraud or just to help them stick to a budget. The "

How to stay safe from con artists.

Even though contactless users have protections in place, you should still take every precaution to prevent scams or lessen the impact if your card is stolen.

Setting up alerts or notifications on your banking app will let you know when your card has been used, according to the UK Finances Take Five campaign. Because you could take action to freeze your card sooner, this could prevent thieves from making additional purchases after they've stolen it.

In order for your card to be deactivated, notify your bank or building society as soon as possible if it is lost or stolen.