Contactless card payments could soon exceed £100 and potentially become unlimited under new proposals from the Financial Conduct Authority (FCA).

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

Card providers already offer customers the ability to adjust their personal contactless limits or turn off contactless functionality on their card altogether, and the FCA is encouraging firms to continue offering their customers this choice.

Contactless 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.

According to estimates from UK Finance’s Annual Fraud Report 2025, contactless fraud rates are currently low at around 1.3p per £100 spent on contactless transactions, compared to 6p per £100 for all unauthorised fraud.

“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,” said executive director of payments and digital finance at the FCA, David Geale.

“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’s proposals are out for consultation until 15 October.

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