UK banks keep 100 limit for contactless card payments despite FCA scrapping it

"The official limit on individual contactless transactions on credit and debit cards has been scrapped but the UK's biggest high street and challenger banks have kept the 100 ceiling in place. The Financial Conduct Authority made the rule change to allow banks to respond to changing consumer demands, inflation and new technology, but Barclays, HSBC, Lloyds, Nationwide, NatWest, and Santander have said they will keep the 100 limit."

"UK Finance, the banking lobby group, said banks were holding off on immediate changes because there was no widespread consumer demand and card terminals in shops would need to be altered to allow for larger contactless payments. Banks may not be changing the limits immediately but they are free to do so from now on."

"We want to make sure our rules provide flexibility for the future, and choice for firms, merchants and consumers. With strong fraud controls already in place and payment technology continuing to improve, this is about giving firms room to innovate while keeping consumer protection front and centre."

The Financial Conduct Authority removed the official £100 cap on contactless transactions to allow banks flexibility in responding to consumer needs and inflation. However, major UK banks including Barclays, HSBC, Lloyds, Nationwide, NatWest, and Santander have chosen to retain the £100 limit. Digital banks Monzo maintains the cap while Starling and Revolut remain undecided. UK Finance cited absent widespread consumer demand and the need for shop terminal upgrades as reasons for the delay. Some banks allow customers to set custom limits up to £100. Contactless payments dominate consumer transactions, representing 67% of credit and 76% of debit card usage, with average transaction values around £18. The FCA emphasizes banks must communicate any changes clearly while maintaining fraud protections.

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