Overview
- The FCA will remove the default £100 cap on contactless card transactions on 19 March 2026, allowing firms to raise or customise limits or let customers do so.
- Defaqto’s February review found only 13 of 31 providers let users set a personal contactless limit, though 21 allow freezing contactless, highlighting uneven app readiness.
- The regulator says reimbursement protections for unauthorised card fraud, including lost or stolen cards, will remain in place after the rule change.
- Industry body UK Finance and the FCA expect most providers to keep the £100 limit initially despite the new flexibility.
- Consumer advisers warn of increased risks of fraud and impulsive overspending—especially for vulnerable customers—and recommend safeguards such as instant alerts, personal limits and the option to disable contactless.