Need to know: £100 contactless limit scrapped as banks given new powers
- The £100 contactless spending limit will be abolished from Thursday, March 19, giving banks and customers control over their own transaction thresholds.
- The Financial Conduct Authority (FCA) announced the change, citing that contactless payments have become the “go-to way to pay” with nearly 95% of eligible in-store card transactions being contactless in 2024. The regulator said existing consumer protections remain in place for fraud cases.
- David Geale, executive director of payments and digital finance at the FCA, said: “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.”
- Individual banks will decide whether to adopt the increased flexibility, though major banks including Lloyds, HSBC, Santander, Barclays, NatWest and Monzo have indicated they plan to maintain the £100 limit. Those that do change must communicate transparently with customers.
- Personal finance expert Charlie Evans warned that while the change offers more flexibility, it raises budgeting concerns as a third of Brits sometimes regret spontaneous purchases. He advised using mobile banking apps and activating purchase notifications to monitor spending.
- Experts recommend several precautions, including double-checking payment terminals, using RFID-blocking wallets to prevent card cloning, and retaining receipts as proof of purchase.
READ THE FULL STORY: New rule for anyone with a credit or debit card starts on Thursday, March 19, 2026
