U.K. regulator proposes flexible contactless payment limits

Published 10/09/2025, 09:44

Investing.com -- The U.K.’s Financial Conduct Authority (FCA) is proposing to give card providers flexibility to set their own contactless payment limits, potentially allowing consumers to make larger purchases without entering a PIN.

The regulatory body launched a consultation Wednesday that would enable payment firms to tailor contactless limits based on customer needs and drive innovation in the sector.

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."

The FCA emphasized that consumers would maintain the same protection levels as with other card payments, with banks required to reimburse unauthorized fraud cases such as when cards are lost or stolen.

According to U.K. Finance’s Annual Fraud Report 2025, contactless fraud rates remain relatively low at approximately 1.3p per £100 spent, compared to 6p per £100 for all unauthorized fraud.

Many card providers already offer customers options to adjust personal contactless limits or disable the functionality entirely. The FCA is encouraging firms to continue providing these choices to consumers.

 

 

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