Proposed Contactless Changes Could Increase Convenience for Consumers

People could benefit from the convenience of contactless payment when making larger payments, under proposals being consulted on by the Financial Conduct Authority (FCA).

The regulator wants to give card providers the flexibility to decide the right limit for them and their customers.

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

Contactless card payments come with the same protection as any other card payment, meaning banks and payment firms must reimburse unauthorised fraud cases, such as when somebody’s card has been lost or stolen. UK Finance’s Annual Fraud Report 2025 estimates that contactless fraud rates are currently low at circa 1.3p per £100 spent on contactless transactions, compared to 6p per £100 for all unauthorised fraud.

This work is one of around 50 measures that the regulator outlined in a letter to the Prime Minster in January to support economic growth and prioritise digital solutions.

The proposals are out for consultation until 15 October 2025. </p