FCA proposes contactless limit increase

The Financial Conduct Authority (FCA) has announced new proposals that would enable contactless card payments to exceed £100 and potentially become unlimited under new proposals to allow banks and other providers to set limits.

The regulator says that it wants to give card providers the flexibility to decide the right limit for themselves and their customers.

Many card providers already offer customers the ability to adjust their personal contactless limits or turn off contactless functionality on their cards altogether. The FCA 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.”