- The Financial Conduct Authority (FCA) has proposed scrapping the current £100 cap on contactless card payments in the UK.
- This move aims to grant banks and card providers the flexibility to set their own transaction limits, allowing them to better meet customer needs and encourage innovation.
- Despite potential concerns regarding fraud, the FCA has reiterated that banks are obligated to reimburse customers for any unauthorised fraudulent transactions if a card is lost or stolen.
- The proposed changes, which could be implemented early next year, are currently open for public consultation until mid-October.
- This initiative is part of a wider set of measures from the FCA designed to support economic growth and align contactless card payments with digital wallets, which currently have no transaction limit.
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