Overview
- Current rules cap single contactless transactions at £100 and trigger strong customer authentication after £300 in spend or five consecutive taps.
- FCA modelling shows a worst-case fraud increase of up to £31.3 million a year if limits rose to £150 per transaction and £450 cumulatively, a scenario it describes as unlikely.
- Under the proposal, firms could raise or remove caps only for payments they judge low risk and they would remain liable to reimburse unauthorised losses.
- The FCA and industry bodies say immediate changes are not expected, with many tills still configured to decline contactless above £100 and limited appetite to fund upgrades.
- Banks and trade groups welcome added flexibility, while economists and charities warn higher limits could fuel impulsive spending and financial abuse; many providers already let customers set personal limits or disable contactless.