The FCA has opened a consultation on proposals that could see card providers given greater flexibility over contactless payment limits.
The move could pave the way for consumers to make higher-value purchases more conveniently while maintaining existing fraud protections.
Under the proposals, individual card issuers would be able to determine the right limit for their customers rather than being tied to a standard cap. The FCA noted that many banks and card providers already offer options to adjust personal contactless limits or disable the functionality entirely, and it is urging firms to continue to provide this level of choice.
FCA executive director of payments and digital finance David Geale said, “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 stressed that contactless card transactions carry the same consumer protections as other card payments, with firms required to reimburse unauthorised cases such as theft or loss.
Figures from UK Finance’s Annual Fraud Report 2025 show that contactless payments continue to have low levels of fraud. The report estimates fraud at around 1.3p per £100 spent on contactless transactions, compared to 6p per £100 for unauthorised card fraud overall.
The initiative forms part of a broader set of around 50 measures outlined by the FCA in a January letter to the Prime Minister, aimed at supporting economic growth and encouraging digital innovation across financial services.
The consultation is open until 15 October 2025, after which the FCA will consider responses before making a final decision on the proposals.
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