Consumers could soon enjoy greater convenience when paying by contactless, under new proposals published by the Financial Conduct Authority (FCA).
The regulator is consulting on giving card providers the flexibility to decide the right limit for their customers, while continuing to encourage firms to offer people the choice of adjusting their personal contactless limits or turning off the functionality altogether.
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 come with the same protection as any other card payment, meaning banks and payment firms must reimburse unauthorised fraud cases. UK Finance’s Annual Fraud Report 2025 estimates that contactless fraud rates are currently low at 1.3p per £100 spent, compared to 6p per £100 for all unauthorised fraud.
This consultation is one of nearly 50 fast-tracked measures the FCA outlined in a letter to the Prime Minister earlier this year to support economic growth, prioritise digital solutions, and remove unnecessary regulatory barriers.
The proposals are open for consultation until 15 October 2025.
Information sourced by the Financial Conduct Authority
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