LONDON, United Kingdom — March 18, 2026 — The UK’s Financial Conduct Authority (FCA) will remove the £100 limit on contactless card payments starting March 19, marking one of the most significant changes to retail payments since tap‑to‑pay technology was introduced.
The regulator confirmed the decision in a statement released earlier this week, stating that the cap is no longer necessary due to stronger fraud-prevention systems and the widespread adoption of biometric authentication. According to the FCA, banks and card issuers now have “sufficient real‑time monitoring tools” to detect unusual activity without relying on a fixed spending ceiling.
The current £100 limit was introduced in 2021, following an earlier rise from £45 during the pandemic. At the time, the increase was intended to reduce physical contact in shops and speed up transactions. Industry groups say consumer behavior has shifted dramatically since then, with contactless payments now accounting for the majority of in-person card transactions.
Retailers will not be required to make immediate changes. Payment terminals will continue to accept contactless transactions as usual, but banks may introduce their own optional limits or security checks. Some providers have already indicated they will allow customers to set personal caps through mobile banking apps.
The British Retail Consortium said the move “reflects the maturity of the UK’s digital payments landscape.” At the same time, consumer groups urged banks to ensure clear communication so cardholders understand how their transactions will be protected.
The FCA emphasised that the change does not remove existing fraud protections. Customers will continue to be reimbursed for unauthorised transactions under standard banking rules, provided they have not acted negligently.
The regulator said it will monitor the impact of the policy shift over the coming months, particularly any changes in fraud patterns or retailer adoption.
The update places the UK among the first major economies to fully lift a national contactless limit, a move industry analysts say could influence similar decisions across Europe.