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FCA to Scrap £100 Contactless Cap, Let Banks Set Their Own Limits From March 2026

The FCA says firms must clearly notify customers of any changes, with reimbursement protections unchanged.

Overview

  • From 19 March 2026, banks and card providers with strong fraud controls may set their own single-transaction caps and adjust cumulative tap rules.
  • Providers that alter limits must inform customers, and the regulator is urging options to set personal caps or switch contactless off, which many banks already offer.
  • Existing rules requiring reimbursement for unauthorised fraud, such as in lost or stolen card cases, remain in force.
  • The FCA says industry feedback suggests most firms will keep the £100 ceiling at first, with some providers indicating no immediate plans to change.
  • Coverage notes security concerns, including a reported FCA estimate of up to £31.3m a year in additional contactless fraud if limits rise, even as the move aligns cards with unlimited biometric wallet payments.