UK FCA Ends Mandatory £100 Contactless Cap

From March 19, the Financial Conduct Authority has removed the mandatory £100 cap on contactless card payments across the United Kingdom, allowing banks and payment providers to set their own limits based on their fraud prevention capabilities. While this change offers greater flexibility for everyday transactions, major banks have confirmed they will maintain the £100 threshold for now, with no immediate alterations for most customers.

The update ends a uniform limit that has governed contactless payments since it reached £100 in 2021. Previously, transactions exceeding that amount required a PIN entry, and cumulative spending over £300 in a day, even from multiple smaller taps, could trigger the same. Banks must now demonstrate robust security measures if they choose to raise limits or eliminate them entirely, but the regulator emphasized that consumer protections remain unchanged. Customers affected by unauthorized transactions, such as those from lost or stolen cards, are still entitled to full refunds.

The FCA introduced the rules to accommodate evolving payment habits, rising inflation, and technological advances. Contactless payments have become the dominant method for...