Skip to content

News

FCA Proposes Greater Flexibility on Contactless Payment Limits

contactless payment
Facebook
Twitter
LinkedIn

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

Facebook
Twitter
LinkedIn

Related Posts

AEMI authorisation cost guide for UK electronic money institutions

How Much Does It Cost to Become an Authorised Electronic Money Institution (AEMI) in the UK?

AEMI authorisation costs at a glance The AEMI authorisation cost involves much more than the application fee paid to the Financial Conduct Authority (FCA). Firms also need to consider capital
Read More >
SPI registration cost guide for UK Small Payment Institutions

How much does it cost to register as a Small Payment Institution (SPI) with the FCA?

Summary The costs of registering to become an SPI will vary depending on your size and business model, but you should expect to budget for the following. What are the
Read More >