The FCA has launched a consultation on proposals that could give consumers more flexibility and convenience when using contactless payments.
The regulator is considering allowing card providers to set their own limits, moving away from a fixed national threshold.
If implemented, the proposals would enable firms to determine what works best for their customers, while still offering users the ability to set personal contactless limits or switch off the feature entirely. Many card issuers already provide these customisation options, and the FCA is encouraging firms to continue doing so.
FCA executive director of payments and digital finance David Geale 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.”
The FCA stressed that contactless transactions offer the same consumer protections as other card payments. Banks and payment firms remain obliged to reimburse customers in cases of unauthorised use, such as theft or loss. According to UK Finance’s Annual Fraud Report 2025, contactless fraud rates remain low, averaging just 1.3p per £100 spent, compared with 6p per £100 for overall unauthorised fraud.
This initiative is one of about 50 measures the FCA outlined in a letter to the Prime Minister earlier this year. The measures focus on driving economic growth and prioritising digital innovation across the UK’s financial services sector.
The consultation on contactless changes will remain open until 15 October 2025, giving firms and stakeholders the opportunity to provide feedback on the proposals.
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