UK Contactless Payment Limits Are About to Get a Shake-Up
More freedom for tap-and-go — but the protections stay
UK Contactless Payment Limits Are About to Get a Shake-Up
After being introduced in 2007 starting at £10, the contactless card payment transaction limit in the UK has been raised over time to £15 in 2010, £20 in 2012, £30 in 2015, £45 in 2020 and £100 in October 2021.
Now from March 2026, UK banks and payment providers with robust fraud controls will be able to set their own contactless payment limits, enabling them to respond more effectively to changing consumer needs, inflation and advances in technology. Firms are also being encouraged to give customers more choice, including allowing them to set their own limits or switch contactless off altogether—options already offered by many high street banks.
Contactless is now the preferred way to pay for most people. Research from Barclays shows that almost 95% of eligible in-store card transactions in 2024 were made using contactless.
Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.
David Geale, Financial Conduct Authority
Strong fraud protections remain a central requirement. Firms must have effective controls in place when processing contactless payments, and the added flexibility is expected to encourage continued investment in fraud prevention—helping to keep consumers protected and giving them greater peace of mind.
Importantly, existing consumer protections are unchanged. Customers will still be reimbursed for unauthorised transactions, such as when a card is lost or stolen.
The new standards follow a public discussion and consultation on how to make payments more convenient while supporting economic growth. They form part of around 50 measures set out by the regulator in a letter to the Prime Minister in January, focused on growth and digital innovation.
Making life easier for consumers is a positive for any hospitality and high street business, and I’m pleased the FCA is bringing forward this change. Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences for consumers. While many people still prefer to use cash or chip and PIN, this change adds much-needed flexibility for providers and consumers.
Kate Nicholls, chair of UKHospitality
The rule changes will take effect in March 2026. From that point, it will be up to individual banks and payment providers to decide if and when they adopt the new flexibility. Any changes to contactless limits must be clearly communicated to customers.
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