UK FCA Plans Bank-Set Contactless Payment Limits

The UK Financial Conduct Authority (FCA) is proposing to allow banks and payment providers to set their own limits on contactless card payments, potentially removing the current £100 per transaction cap. This change aims to provide greater convenience for consumers, enabling larger purchases with a simple tap rather than entering a PIN, aligning card payments with the unrestricted nature of digital wallets like Apple Pay. Although the FCA recognizes concerns about theft and fraud, it emphasizes existing safeguards and the providers' responsibility to cover losses in fraudulent cases. The proposal is under consultation until October 15, with no immediate changes expected, and respondents have largely favored keeping current limits. The FCA highlights that advances in technology and fraud prevention make raising or removing limits feasible, and banks might also offer customers the option to set personalized limits in the future. Despite public apprehension, the FCA believes flexibility will better accommodate rising prices and evolving payment technologies over time.