Major £100 contactless card limit rule is set to change for UK banks — what you need to know
New regulations that will come into force from Thursday will allow banks and payment providers with strong fraud controls to set their own contactless card payment limits.
While major British banks will retain the existing £100 limit for now, this change gives them significant flexibility in the future.
The Financial Conduct Authority (FCA) has approved these rule changes, effective from 19 March, to enable firms to better respond to changing consumer demands, inflation and new technology.
The contactless limit has been increased several times before.
While many providers currently allow customers to set their own lower limits, it is up to individual firms to decide if and when to use this new flexibility. Many are currently reviewing their situations and promise to keep customers informed of future adjustments.
Those who decide to make changes must communicate them clearly to their customers, the regulator said.
Companies are also encouraged to allow customers to set their own limits or turn off contactless altogether; many banks have already given customers the ability to do this.
The rule changes will also allow companies to consider changing their cumulative contactless approach in the future if they wish.
Background limits required people to enter their Pin after a certain number of transactions or spends.
Contactless payments have grown in popularity over the years; Contactless card transaction limits were previously increased in a series of steps.
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According to consumer spending data from Barclays, 94.6% of eligible in-store card transactions will be contactless in 2024; This figure represented 10 times more contactless transactions per month compared to 2015.
Figures from UK Finance show that by December 2025, contactless transactions will make up 67% of credit card transactions and 76% of debit card transactions.
The average value of a contactless payment is just under £18, according to figures from UK Finance.
The FCA believes greater flexibility options will give firms greater incentive to prevent fraud and provide greater protection for consumers.
Existing protections will remain in place; This means consumers must be compensated in cases of unauthorized fraud, such as loss or theft of their cards.
Larger payments via mobile wallets also continue to be possible, with the phone authenticating the person’s identity, for example through facial recognition or fingerprint.
The review of the contactless card limit was one of around 50 measures the regulator outlined in a letter to Prime Minister Sir Keir Starmer in January to help support economic growth.
Here’s how banks’ and building societies’ contactless card features currently work
NatWest
NatWest has no immediate plans to change the contactless limit. Customers will be informed if there are any changes.
The bank currently allows customers to switch on and off contactless and change their limit below the standard £100 if they wish. Customers can set their payment limits through banking applications.
United Kingdom
The bank has no current plans to change the contactless limit from £100.
Santander’s customers can currently turn off contactless or set their own limits in £5 increments.
Lloyds
Customers of Lloyds and the banking group’s Halifax and Bank of Scotland brands can already set their own contactless payment limits on their apps, up to £100 in £5 increments.
The bank said it was committed to maintaining that flexibility. There are currently no plans to change the limits.
Barclays
Personal banking customers with a Barclays debit card can set their own contactless limits of up to £100 via the Barclays app. The bank will continue to apply the £100 card payment limit.
HSBC UK/First Direct
The contactless limit will remain at £100 for both brands. Customers cannot currently set lower limits within their applications.
Nationwide Construction Cooperative/Virgin Money
A spokesman said: “We have no immediate plans to increase the current £100 contactless transaction limit, but we will continue to keep this under review over the coming months.”
Customers across the country already have the ability to set their contactless card limit to under £100 in their banking apps if they wish.
TSB
TSB is not increasing the cap above the currently set level of £100.
Customers can already use the TSB app to lower the £100 limit or remove the contactless option altogether if they wish.
Starling Bank
The bank is currently reviewing limit increase changes and no decision has been made yet.
Its customers can already set their own single transaction contactless limit and this will continue. They can change their ceiling by adjusting the amount in the Starling app and sliding the scale from £100 to £0.
Monzo
The bank’s customers can already customize their contactless limits on the Monzo app, including lowering their limits or turning off contactless payments.
Monzo regularly reviews payment limits. There is currently no change in contactless payment limits, and customers will be informed if there are any changes in products or features.
rebel
The bank does not currently plan to increase the contactless transaction limit, but the plans are kept under review.
Revolut customers can’t currently set contactless limits of less than £100, but they can set monthly spending limits, limiting the total amount that can be spent on that card across all payment types.
