- New regulations, effective from Thursday, allow banks and payment providers with robust fraud controls to set their own contactless card payment limits.
- The Financial Conduct Authority (FCA) confirmed these rule changes, from 19 March, to enable firms to better respond to changing consumer demands, inflation, and new technology.
- While major British banks will largely retain the current £100 limit for now, this change offers them significant future flexibility.
- Many providers already allow customers to set their own lower limits or turn off contactless payments, a practice the FCA encourages.
- The FCA believes this increased flexibility will incentivise firms to enhance fraud prevention, with existing consumer protections for unauthorised fraud remaining in place.
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