Banks could SCRAP £100 contactless card limit – what does it mean for you?

Contactless card payments could increase above £100 and potentially become unlimited under new proposals from the Financial Conduct Authority (FCA).

The proposed changes aim to offer customers more “convenience” and give card providers the “flexibility to decide the right limit for them and their customers.”

Under current FCA rules, customers can only make payments of up to £100 when tapping a debit or credit card – instead of using a four-digit PIN.

There’s also a cap of £300 on contactless spending per day before a customer must input their PIN. However, this varies between providers and many set a lower limit.

Increasing the limit would bring contactless card payments in line with those made through digital wallets on smartphones such as Apple Pay or Google Pay – which are unlimited.

Contactless cards were first introduced in 2007 with a payment limit of £10. It crept over five years before jumping to £45 during the Covid pandemic.

The latest payment limit increase to £100 came into effect in October 2021.

The chart below shows how the contactless card limit has changed over time:

The FCA is consulting on the proposals until 15 October 2025. If approved, the changes come into effect from early next year.

Are contactless card payments secure?
Contactless card payments come with the same protection as any other card payments. That means banks must provide compensation for unauthorised fraud cases.

Currently, fraud rates for contactless card payments are relatively low.

Around 1.3p per £100 spent on contactless cards is fraudulent compared to 6p per £100 of unauthorised card payments overall, according to UK Finance’s annual fraud report.

Keeping on top of your budget

Another rise in the contactless card limit could make it easier to spend more. So making a budget is more important than ever.

Using a budgeting app is a great way to keep an eye on your spending and set money aside into an emergency fund to cover any unexpected expenses.

It’s also worth maximising any spending insights offered by your card provider.

Most digital bank accounts offer advanced analytics to help you understand your spending habits and create a budget to keep your finances on the right track.