By Vicky Shaw

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Contactless card limits are set to exceed £100 with firms tailoring limits, under proposals set out by the City regulator.

The Financial Conduct Authority (FCA) said it wants to give card providers the flexibility to decide the right limit for them and their customers.

This could mean people having more convenience to “tap and go” when making bigger payments.

The contactless card limit has been raised in steps over the years, currently standing at £100.

The regulator’s proposals are out for consultation until October 15 2025.

Many card providers already offer customers the ability to adjust their personal contactless limits or turn off contactless functionality on their card altogether. The FCA said it is encouraging firms to continue to offer their customers this choice.

David Geale, executive director of payments and digital finance at the FCA, said: “We’re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation.

“While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers.

“People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”

Contactless card payments have the same protections as other card payments, meaning banks and payment firms must reimburse unauthorised fraud cases, such as when a customer’s card has been lost or stolen.

UK Finance’s Annual Fraud Report 2025 estimates that contactless fraud rates are currently low, the regulator said, at around 1.3p per £100 spent on contactless transactions compared with 6p per £100 for all unauthorised fraud.

The move is one of around 50 measures that the regulator outlined in a letter to Prime Minster Sir Keir Starmer in January to help support economic growth.

The regulator said in March that 85% of people in the UK make contactless card payments each month.

Any changes would need to support good customer outcomes as required by the Consumer Duty rules, the FCA has previously said.

The regulator previously launched a contactless payments engagement paper which received nearly 1,300 responses.

It said based on industry feedback, it anticipates that most firms would continue to implement the £100 limit for the time being.