SCA & Contactless Limits – New Flexible Approach
The FCA has introduced a more flexible approach to contactless limits, allowing card providers to set their own limits rather than relying on the previous £100 cap.
This change aligns card payments more closely with digital wallets (e.g. Apple Pay, Google Pay, Samsung Pay), which have effectively operated without fixed contactless limits for some time.
To apply this flexibility, firms must rely on SCA exemptions, meaning transactions need to be assessed as low risk — placing greater emphasis on transaction monitoring, customer behaviour analysis, and effective controls.
For firms, the key message is clear: greater flexibility comes with greater responsibility. Robust safeguards, internal controls and ongoing oversight will be critical to manage risk and support this shift.
More details can be found here:
FCA consults on improving the redress system
The FCA has reached a key milestone in its joint work with the Financial Ombudsman Service (FOS) and the Government to modernise the redress system.
The aim is clear: faster, fairer outcomes for consumers and greater clarity for firms on how issues are handled.
As part of this, the FCA has opened a consultation (Chapter 2) on proposals to improve how redress is delivered in practice. The FOS is inviting feedback until 11 May 2026.
For firms, this is an important development, as changes to the redress framework could impact how complaints, remediation and regulatory expectations are managed going forward.
More details can be found here:
https://www.fca.org.uk/news/blogs/creating-redress-system-works-better-consumers-firms
https://www.fca.org.uk/publications/consultation-papers/cp26-9-modernising-redress-system
FCA highlights good and poor practices on Consumer Understanding
The FCA has published examples of good practice and areas for improvement relating to the “consumer understanding” outcome under Consumer Duty.
Drawing on supervisory work, the update highlights how firms are helping customers better understand products and services — and where regulators are still seeing weaknesses.
Key themes include:
• Clear and effective customer communications
• Testing whether customers actually understand key information
• Using monitoring and feedback to identify where improvements are needed
For firms subject to Consumer Duty, this provides useful insight into how the FCA expects firms to support informed decision-making and demonstrate good consumer outcomes.
More details can be found here:
PSR fines Bank of Ireland UK £3.7m for Confirmation of Payee delay
The Payment Systems Regulator (PSR) has fined Bank of Ireland UK plc £3,779,300 for failing to implement Confirmation of Payee (CoP) by the required deadline.
The bank implemented its system to send CoP requests 14 months late, meaning the safeguard was not applied to transactions involving over 1.14 million new payees, covering payments totalling around £6.9 billion.
Confirmation of Payee is an important protection designed to help prevent fraud and misdirected payments by allowing customers to check they are sending money to the correct account. The PSR had confirmed the requirement in October 2022, giving payment service providers time to prepare.
This enforcement action reinforces the importance regulators place on implementing fraud prevention measures on time and ensuring customers benefit from key protections.
More details can be found here:
