The Financial Conduct Authority (FCA) has launched a consultation on proposals that could make contactless payments more convenient for consumers by giving card providers the flexibility to set higher limits.
This consultation, on the proposed technical standards, follows its Engagement Paper published in March 2025, which sought feedback on the different ways contactless limits could be approached.
The changes would allow firms to tailor their contactless offerings, while still ensuring that customers remain protected from fraud. Many providers already enable customers to adjust their personal limits or disable contactless functionality entirely, and the FCA is encouraging firms to continue offering this choice.
David Geale, Executive Director of Payments and Digital Finance at the FCA, explained:
“We’re seeing smarter payment technology and more well-established fraud controls, so it’s the right time to let firms tailor contactless payments to fit their customers’ needs and drive innovation. While we wouldn’t expect to see immediate changes to limits by firms, they would have the flexibility to make payments more convenient for customers. People are still protected; even with contactless, firms will refund your money if your card is used fraudulently.”
The FCA emphasised that contactless transactions carry the same protections as other card payments, requiring banks and payment firms to reimburse customers in cases of unauthorised fraud. According to UK Finance’s Annual Fraud Report 2025, fraud rates on contactless transactions remain low, at around 1.3p per £100 spent, compared to 6p per £100 across all unauthorised fraud.
This initiative forms part of a wider programme of around 50 measures the FCA outlined in a letter to the Prime Minister earlier this year, aimed at supporting economic growth and prioritising digital solutions.
The consultation on the proposed changes is open until 15 October 2025.
The consultation can be found in Chapter 9 of the Quarterly Consultation CP25/24 https://www.fca.org.uk/publication/consultation/cp25-24.pdf
Comments should be submitted by 15 October 2025. Comments may be sent by electronic submission using the form on the FCA’s website at https://www.fca.org.uk/publications/consultation-papers/cp25-24-quarterly-consultation-paper-no-49
