The UK’s Financial Conduct Authority (FCA) is advocating for increased flexibility regarding contactless payment limits, allowing card providers to customize these limits based on their customers’ needs. The intention is to enable card issuers to decide on the appropriate contactless payment limits for their clientele, facilitating a more tailored experience.
Currently, many card issuers already provide options for customers to modify their contactless spending limits or even disable the contactless feature entirely if they prefer. The FCA is encouraging these firms to maintain and expand these offerings.
David Geale, the executive director responsible for payments and digital finance at the FCA, has shared insight regarding this initiative. He highlighted the advancements in payment technologies and improvements in fraud prevention measures, suggesting that now is an opportune moment for firms to create a more personalized approach to contactless payment limits. He noted that while immediate adjustments to contactless limits may not occur right away, businesses will have the latitude to enhance convenience for customers in the near future. Geale reassured that consumer protection remains a priority, stating that financial institutions are obligated to refund customers in cases of fraudulent use of their cards.
The protections surrounding contactless payments are consistent with those that apply to all card transactions. This implies that banks and payment providers must reimburse users for unauthorized transactions resulting from lost or stolen cards. According to the 2025 Annual Fraud Report by UK Finance, contactless fraud rates are relatively low, averaging around 1.3 pence per £100 spent on contactless transactions, in stark contrast to the higher rate of 6 pence per £100 for all types of unauthorized fraud.
The FCA’s push for flexibility in contactless payment limits is part of a broader strategy aimed at fostering economic growth and prioritizing digital solutions. This effort includes around 50 measures that were previously outlined in a communication to the Prime Minister.
The proposals regarding contactless payments are currently open for public consultation until October 15, 2025, allowing stakeholders and the public to provide feedback on these suggested changes. This engagement is a critical component of the FCA’s regulatory approach, ensuring that the perspectives of various stakeholders are taken into account as they explore advancements in payment methods and consumer protections.