FCA to Let Banks Set Their Own Contactless Limits
The FCA is giving banks flexibility to set their own contactless payment limits from March 2026. This could make paying for fuel, parking, and car services much easier for drivers.
Banks and payment providers will be given greater flexibility to set their own contactless payment limits from March 2026, the Financial Conduct Authority has announced.
Under the new rules, firms with strong fraud controls will be able to adjust contactless limits in response to consumer demands, inflation, and new technology. Banks will also be encouraged to let customers set their own limits or turn contactless payments off entirely.
The move follows research by Barclays showing that almost 95% of all eligible in-store card transactions were contactless in 2024. "We want to provide flexibility for the future, and choice for both firms and consumers," said David Geale, the FCA's executive director of payments and digital finance.
Existing consumer protections remain in place, including the requirement for banks to reimburse customers for unauthorised fraud. The changes are part of around 50 measures the FCA outlined to support economic growth and prioritise digital solutions.
However, industry feedback suggests most banks are likely to maintain their existing contactless limits for the foreseeable future, even after the new rules take effect.
