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FCA Allows UK Banks to Set Contactless Limits but £100 Cap Remains
The Financial Conduct Authority enables banks to customize contactless payment limits while major banks maintain the £100 cap, with 95% of UK in-store card payments contactless.
- On March 19, the Financial Conduct Authority allowed banks and payment providers to set their own contactless spending limits, but Barclays, HSBC, and Nationwide Building Society are keeping the £100 cap for now.
- The FCA says greater flexibility will help firms respond to changing consumer demands, inflation and new technology, as part of around 50 measures outlined to Prime Minister Sir Keir Starmer.
- Usage data indicate Barclays reports 94.6% of eligible in‑store card payments last year were contactless, with the average payment just under £18, and mobile wallets allow higher payments using device verification.
- Consumers retain reimbursement protections for unauthorised fraud, firms must notify customers of limit changes, and supermarkets faced contactless payment faults yesterday.
- Experts expect that over time banks and card providers could raise or remove limits, while customers using banking apps can already set or disable contactless up to the £100 limit.
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19 Articles
The Removal of Contactless Payment Limits in the UK: Implications for Consumers and Banks
In March 2026, a significant change was introduced to the UK's payment system when the Financial Conduct Authority (FCA) removed the national £100 limit on contactless card payments. This decision marked a shift away from a standardised national cap towards a more flexible, bank-led approach.
Coverage Details
Total News Sources19
Leaning Left1Leaning Right2Center13Last UpdatedBias Distribution81% Center
Bias Distribution
- 81% of the sources are Center
81% Center
C 81%
13%
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