The contactless payment change that could be good news for shoppers
The way you use contactless payments is set to change
- The Financial Conduct Authority (FCA) is introducing regulatory changes from 19 March to allow banks and payment providers to set their own contactless payment thresholds, moving beyond the current £100 limit.
- Firms with robust fraud controls will gain autonomy to decide when to adopt this flexibility, aiming to respond to changing consumer demands, inflation, and new technology.
- The new rules also offer flexibility for firms to reconsider the cumulative contactless limit, which currently stands at £300 or five consecutive transactions.
- Existing consumer protections against unauthorised fraud, such as lost or stolen cards, will remain in place, and firms are encouraged to allow customers to set their own limits or disable contactless payments.
- While the changes provide flexibility, industry bodies like UK Finance do not anticipate an immediate shift from the £100 limit, emphasising the importance of security and fraud controls.