£100 contactless card limit lifted – what does it mean for you?

The £100 contactless card limit is being axed on 19 March as the regulator bids to kickstart economic growth.

The Financial Conduct Authority (FCA) will let banks and payment service providers (PSPs) like PayPal and GoCardless offer customers the chance to set their own personal contactless limits.

Banks and PSPs must have strong fraud protections in place in order to lift contactless limits, including systems to detect and stop fraud occurring when customers use the payment method.

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Meanwhile, firms will be encouraged by the regulator to let customers turn off contactless payments entirely.

The £100 limit does not apply to contactless payments made via Google Pay or Apple Pay as they already allow contactless transactions above £100.

If your bank changes your contactless limit, it will need to tell you.

The move from the FCA comes as it looks to stimulate spending among consumers, with lots already using contactless to make payments.

Contactless payments accounted for 67% of all credit card and 76% of all debit card transactions in the UK in December 2025, according to trade body UK Finance.

David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”

Consumers will retain existing protections under the new rules, including the right to be reimbursed by banks if their card is lost or stolen and contactless payments are made with it.

That said, contactless fraud rates are estimated to stand at just 1.3p per £100 spent, according to UK Finance’s latest Annual Fraud Report.

What are the risks of higher contactless limits?

Contactless card payments were first introduced in 2007, when the limit stood at £10. The limit was hiked to £15 in 2010, £20 in 2012, £30 in 2015 and £45 from 2020. It was raised to £100 in 2021.

Supporters of higher contactless limits have said it encourages growth in the economy as it makes it easier for consumers to make quick payments on bigger purchases.

The FCA has also said, based on industry feedback, most banks and PSPs are likely to keep their existing contactless limits “for the foreseeable future”, even with the latest changes coming into force.

However, some experts have raised concerns that abolishing the £100 limit could encourage impulsive spending and make it easier for criminals to pocket larger sums of money from victims.

Kara Gammell, personal finance expert at price comparison site MoneySuperMarket, said: “With the £100 limit removed, you could pay much higher amounts with just one tap, which makes it easier for fraudsters to take advantage.”

However, the FCA giving customers the choice to raise their contactless limits, rather than it being compulsory, offers a layer of protection, said Laura Suter, director of personal finance at investment platform AJ Bell.

“Being able to set your own limits, or turn contactless off altogether, gives people more control, whether that’s to protect themselves from fraud or simply to help stick to a budget,” Suter said.

How to protect yourself from scammers

Despite protections being in place for people using contactless, you should still take every step possible to avoid being scammed, or lessen the blow if your card is stolen.

UK Finance’s Take Five campaign advises setting up notifications or alerts on your banking app so you know when your card has been used. This could stop thieves from spending more money after they’ve taken your card, as you could take action to freeze your card earlier.

Plus, if your card is lost or stolen, report it to your bank or building society as soon as possible so they can deactivate it.

How to stay in control of your spending

Gammell, from MoneySuperMarket, suggested three ways to keep on top of your spending now the £100 limit has been lifted.

Employ the 24-hour rule

With the £100 contactless cap being removed, making bigger purchases more quickly becomes much easier.

So it’s worth applying the so-called “24-hour” rule when considering a non-essential bigger buy.

“Pause for a full day before making the purchase to give yourself time to think,” Gammell said.

Another tip is the “stranger test”, which involves imagining a stranger holding an item you’re considering buying in one hand then the physical cash it would cost in another.

“Research shows most people would actually choose the money,” Gammell said.

Carry cash

If you don’t trust yourself to curb irrational buying when using contactless, you could withdraw cash instead.

Gammell explained: “Withdrawing a set amount of cash – particularly for high-impulse spending like food or clothes shopping – can help you monitor your spending and stay in control of your budget.”

Set your own contactless limit

Some banks already allow you to set your own contactless limit. If you’re concerned about impulse buying, it might be worth contacting yours to set a lower limit.

Some banks let you turn off contactless payments entirely, adding another layer to the payment process and, in turn, discouraging rash purchases.

Gammell said: “Having to enter your PIN instead of tapping may seem like extra effort, but it adds ‘friction’ to the payment process, creating a pause for thought moment, which may be enough to stop a one-tap purchase you might later regret.”