The contactless fee change that might be excellent news for customers

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Your help makes all of the distinction. Learn extra The Metropolis regulator is paving the way in which for customers to make bigger contactless funds, shifting past the present £100 transaction restrict for bodily playing cards.

Beneath new plans from the Monetary Conduct Authority (FCA), set for subsequent yr, banks and fee suppliers with strong fraud controls will achieve autonomy to determine their very own fee thresholds.

These regulatory adjustments are scheduled to begin on March 19, although particular person corporations will resolve when to undertake the flexibleness.

Corporations that go forward with the adjustments might want to talk them clearly to their prospects, the regulator stated.

The goal is to permit corporations to higher reply to altering shopper calls for, inflation and new know-how.

Corporations are additionally being inspired to let prospects set their very own restrict, or flip contactless off altogether, as many excessive road banks already do.

The recognition of contactless funds has surged through the years, with contactless card transactions limits having beforehand been elevated in a sequence of steps.

In response to shopper spending knowledge from Barclays, 94.6 per cent of eligible in-store card transactions had been contactless in 2024.

Final yr, there have been 10 instances as many contactless transactions monthly than there have been in 2015, in accordance with Barclays.

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In addition to a £100 restrict for a single contactless card transaction, there may be additionally a cumulative whole of £300 in contactless transactions, or not more than 5 consecutive contactless transactions, for the reason that final software of “robust buyer authentication” to confirm a fee was made.

Beneath the rule change, corporations may also have the flexibleness to think about altering the cumulative contactless strategy in the event that they wish to.

<img src="https://static.independent.co.uk/2025/11/20/9/24/iStock-1127802235.jpeg" srcset="https://static.independent.co.uk/2025/11/20/9/24/iStock-1127802235.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/11/20/9/24/iStock-1127802235.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The popularity of contactless payments has surged over the years" class="sc-1mc30lb-0 ggpMaE"/> The recognition of contactless funds has surged through the years (Getty/iStock) The FCA believes the choice of higher flexibilities will incentivise corporations to step up their fraud prevention, giving customers higher safety.

Current protections will stay in place, that means customers should be reimbursed in unauthorised fraud circumstances, reminiscent of if their card is misplaced or stolen.

The overview of the contactless card restrict was considered one of round 50 measures the regulator outlined in a letter to Prime Minster Sir Keir Starmer in January to assist help financial progress.

The proposals had been out for session till October 15. The regulator has beforehand stated that, primarily based on trade suggestions, it anticipated most corporations would proceed to implement the £100 restrict in the intervening time.

David Geale, govt director of funds and digital finance on the FCA, stated: “Contactless is folks’s favoured solution to pay. We wish to make sure that our guidelines present flexibility for the longer term, and selection for each corporations and customers.”

Kate Nicholls, chairwoman of UKHospitality, stated: “Making life simpler for customers is a optimistic for any hospitality and excessive road enterprise, and I’m happy the FCA is bringing ahead this alteration.

“Contactless has more and more grow to be the popular fee technique of alternative for many individuals and lifting the restrict can imply faster and simpler experiences for customers. Whereas many individuals nonetheless want to make use of money or chip and Pin, this alteration provides much-needed flexibility for suppliers and customers.”

Jana Waterproof coat, managing director of funds and innovation at UK Finance, stated: “We welcome the FCA’s transfer to offer banks and fee suppliers higher flexibility over contactless limits sooner or later.

“Contactless is a very talked-about and safe solution to pay.

“Whereas we don't count on to see any fast change to the £100 contactless restrict, any adjustments made sooner or later shall be completed rigorously and guarantee robust safety and fraud controls stay in place.”