UK lifts £100 cap on single contactless card payments

In short: The UK has removed the rule that limited single contactless card payments to £100, and banks can now set their own limits for physical cards.

What happened

The Financial Conduct Authority (FCA), the UK’s financial regulator, lifted the £100 cap on single contactless payments made with a physical debit or credit card on March 19, 2026. This means the FCA no longer requires a fixed limit across the whole country.

Banks and payment providers can now decide their own contactless limits, as long as they have strong controls to prevent fraud. Fraud is when someone uses your money without permission, for example after a card is lost or stolen.

This change only applies to tapping a physical card. Digital wallets like Apple Pay and Google Pay are not affected, and they already work differently. They can approve higher payments because they usually ask for Face ID or a fingerprint (like showing an ID card at the door).

Why it matters

For many people, not much will change right away. Most banks are expected to keep the £100 limit at first, because raising it could increase losses from stolen cards and because customers are used to the current rules.

Before today, there were also extra safety checks. Even under the £100 cap, you typically had to enter your PIN after around five contactless payments or about £300 in total spending.

Over time, the biggest change may be more choice. The FCA is encouraging firms to let customers set their own contactless limits, or turn contactless off in their banking app. Banks also have to explain any changes clearly under Consumer Duty rules.

Source: Financial Times