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UK Banks Gain Control Over Contactless Limits on March 19 as Most Keep £100

The FCA says the move is designed to future‑proof payments and bring cards closer to mobile wallets, with any changes requiring clear customer notification.

Overview

  • From March 19, banks and payment providers can set their own contactless card caps under new Financial Conduct Authority rules.
  • Lloyds, HSBC, Santander, Barclays, NatWest and Monzo say they will initially retain the £100 single‑transaction limit.
  • Existing consumer safeguards remain in place, including refunds for unauthorised card fraud and ongoing security checks.
  • Firms that change limits must clearly inform customers, and providers are encouraged to let users set personal limits or switch off contactless.
  • Companies may also reconsider the current £300 or five‑tap strong customer authentication threshold, with industry figures expecting a cautious, phased approach that could ease checkout friction.