Starting this week, there will be a significant shift in how you make payments at the checkout while shopping. The current £100 limit for contactless card payments will be eliminated, allowing banks to establish their own limits starting from March 19. Presently, individuals are required to enter their four-digit PIN for transactions exceeding £100. If multiple contactless payments totaling over £300 are made in a day, the PIN may also be requested.
Following the new regulations coming into effect on March 19, the existing £100 limit will be removed, granting banks the flexibility to set their own limits. Moreover, individuals will have the option to define their personal contactless payment limit.
Several card issuers already permit customers to adjust their contactless limit or disable the feature entirely. The contactless limit has evolved over the years, starting at £10 in 2007, gradually increasing to £100 in 2021.
Last year, the Financial Conduct Authority (FCA) announced plans to abolish the contactless limit after a consultation. The FCA stated that approximately 85% of UK residents make monthly contactless card payments, highlighting improvements in fraud prevention measures.
David Geale, the FCA’s executive director of payments and digital finance, emphasized the popularity of contactless payments and the importance of providing flexibility for both consumers and businesses. Kate Nicholls, chairwoman of UKHospitality, applauded the FCA’s decision, stating that lifting the limit will enhance consumer convenience.
Jana Mackintosh, managing director of payments and innovation at UK Finance, welcomed the FCA’s move to grant banks and payment providers more flexibility in setting contactless limits. While immediate changes to the £100 limit are not anticipated, any future adjustments will prioritize security and fraud prevention.
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