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FCA Removes UK’s £100 Contactless Cap as Major Banks Keep Limit in Place

Providers with strong fraud controls now choose their own limits subject to clear customer notices, with existing reimbursement protections unchanged.

Overview

  • The rule took effect on 19 March, letting banks and payment firms raise, lower or remove per‑transaction contactless limits beyond £100.
  • Barclays, HSBC, Lloyds (including Halifax and Bank of Scotland), NatWest, Santander and Nationwide say they will hold at £100 for now, with TSB and several challengers also making no immediate changes.
  • Any future adjustments must be clearly communicated to customers, and many banks already allow users to set lower caps or disable contactless in their apps.
  • Mobile wallets such as Apple Pay and Google Pay already allow higher‑value tap payments through biometric verification and additional security checks.
  • Fraud risk remains a focus, with low losses per £100 of spend reported but recent rises in contactless fraud, and regulators expecting stronger real‑time controls before any wider limit increases.