Shoppers in the UK may soon be able to spend more than £100 on a single contactless card purchase — or face no cap at all — under proposals put forward by the Financial Conduct Authority (FCA).
The regulator is consulting on whether to scrap the current ceiling and hand the decision to banks and card issuers. The move would mark one of the most significant changes in everyday payments since tap-and-go cards first arrived on the high street 16 years ago. A final decision is expected after the consultation closes in October, with changes possible as early as next year.
A Push for Flexibility
David Geale, the FCA’s executive director for payments and digital finance, said technology and fraud protection had improved to the point where a rethink made sense.
“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,” he said.
While regulators don’t expect banks to rush into raising limits, the change would give them the option. It would also bring plastic cards closer to mobile wallets such as Apple Pay and Google Pay, which already allow customers to spend without restriction.
How the Rules Work Now
At present, customers can spend up to £100 in a single tap, with a daily cap of £300. Some banks impose even tighter limits, or ask for a PIN after a certain number of taps to cut the risk of fraud.
The limit has risen steadily since contactless cards launched in 2007 at just £10. It was lifted to £15 in 2010, £20 in 2012, £30 in 2015, £45 during the Covid pandemic, and finally £100 in 2021.
Responses to the FCA’s consultation suggest many shoppers would support a higher threshold, with most feedback pointing to a cap between £150 and £250.
Fraud Risks Still Low
Concerns about fraud have always shaped the debate around limits, but the FCA insists the numbers remain small. According to UK Finance, fraud on contactless transactions costs just 1.3p per £100 spent, compared with 6p per £100 across all types of unauthorised fraud.
Geale stressed consumer protections will not change: “Even with contactless, firms will refund your money if your card is used fraudulently.”
The Bigger Shift Away From Cash
The review comes as contactless becomes the default way to pay for millions of people. Covid accelerated the move away from coins and notes, and today tap-and-go cards account for a large share of spending on the high street.
If banks are allowed to raise or even remove limits, the change could reshape shopping habits again — making it possible to buy big-ticket items like household goods or weekly groceries without ever reaching for a PIN.
