A change to contactless payment rules is set to take effect on Thursday, March 19, 2026. The Financial Conduct Authority (FCA) will remove the current £100 contactless spending limit, allowing banks and payment providers to set their own thresholds.
The update affects all debit and credit card users across the UK, although the practical impact may vary depending on how individual banks respond.
Contactless payments have become a widely used method for everyday transactions. According to industry data, a large majority of in-store card payments are now made using contactless technology.
The £100 cap was originally introduced as a safeguard to limit potential losses in cases of fraud. With the new rule, that fixed limit will no longer be mandated by regulators.
Change
From March 19, there will no longer be a universal contactless payment cap set by the FCA. Instead, financial institutions will have the flexibility to:
- Set their own contactless limits
- Allow customers to choose a preferred limit
- Offer the option to disable contactless payments entirely
The FCA has indicated that this approach is intended to provide more flexibility while encouraging firms to strengthen fraud prevention systems.
Banks
Despite the regulatory change, early indications suggest that many major banks may not immediately raise their limits.
Several large institutions, including Lloyds, HSBC, Santander, Barclays, NatWest, and Monzo, have stated they plan to keep the £100 limit in place for now.
This means that, in practice, many consumers may not notice an immediate difference after March 19.
| Bank Response | Expected Action |
|---|---|
| Major UK banks | Likely keep £100 limit |
| Some providers | May offer higher limits |
| Customer options | Possible custom limits |
Banks that decide to make changes are expected to clearly inform customers before implementing new limits.
Security
The removal of the cap does not change existing consumer protections. If a contactless card is lost or stolen and used fraudulently, customers are still entitled to reimbursement, provided they report the issue promptly.
At the same time, the change places greater responsibility on banks to maintain strong fraud detection and prevention systems.
Spending
The increased flexibility may also influence spending behaviour. Research suggests that a portion of consumers make unplanned purchases when using contactless payments.
Without a fixed limit, there may be fewer natural pauses before completing a transaction. This could make it easier to overspend, particularly on higher-value items.
For this reason, some experts recommend using available tools to monitor and control spending.
Tips
Consumers can take several steps to manage both security and budgeting:
- Use banking apps to track transactions in real time
- Enable instant payment notifications
- Review payment amounts before tapping
- Consider RFID-blocking wallets for added protection
- Keep receipts for record-keeping and dispute resolution
These measures can help maintain awareness and reduce risks associated with contactless payments.
Outlook
The removal of the £100 cap represents a shift from a standardised rule to a more flexible framework. While the change gives both banks and consumers greater control, its real-world impact will depend on how widely higher limits are adopted.
In the short term, many customers may see little change if their bank maintains the existing threshold. Over time, however, the update could lead to more personalised payment settings and evolving security measures across the industry.
FAQs
Is the £100 contactless limit removed?
Yes, from March 19, 2026.
Will all banks raise their limits?
No, many may keep the £100 cap.
Can I set my own limit?
Some banks may allow custom limits.
Are fraud protections still in place?
Yes, unauthorised payments must be refunded.
