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FCA Opens Consultation to Let Banks Set Contactless Limits, Potentially Ending £100 Cap

The consultation focuses on evidence of robust fraud checks alongside clear customer controls before any rule change.

Overview

  • Proposals published on 10 September would allow banks and payment firms to choose their own tap-to-pay limits, with feedback invited until 15 October 2025.
  • The FCA says existing protections remain in place, with firms required to refund unauthorised contactless fraud; UK Finance reports about 1.3p fraud per £100 spent.
  • Based on industry feedback, the regulator expects most providers to keep the £100 limit for now, with any increases contingent on proven controls and orderly implementation.
  • Many issuers already let customers set lower personal limits or switch contactless off, while Apple Pay and Google Pay permit higher-value taps using biometrics or a passcode.
  • A domestic abuse charity warns higher limits could help abusers drain victims’ accounts and urges a consistent approach to coerced debt, as UK Finance signals no immediate changes are likely.