Britain's major banks are keeping the £100 limit on contactless card payments, despite the Financial Conduct Authority (FCA) scrapping the official cap. Barclays, HSBC, Lloyds, Nationwide, NatWest, Santander, and digital-only bank Monzo have all confirmed they will not raise the limit for now. Starling and Revolut say they have yet to decide.
The FCA removed the £100 ceiling to allow banks flexibility in response to consumer demand, inflation, and new technology. However, UK Finance, the banking lobby group, said lenders are holding off because there is no widespread public demand and many shop card terminals would need upgrades to handle larger contactless amounts.
Contactless payments remain the most popular method, accounting for 67% of credit card and 76% of debit card transactions. The average contactless payment value is just under £18. Some banks, such as Lloyds and Santander, already allow customers to set their own limits in £5 increments up to £100.
An FCA spokesperson said the rule change aims to provide flexibility while maintaining consumer protection, noting that firms must communicate any changes clearly. Higher or no caps have raised concerns about fraud, as criminals could make larger purchases on stolen cards. The FCA expects banks to have fraud checks in place, such as calling or texting customers for large transactions.
There is also worry about people overspending with ease of contactless payments, which may reduce tracking of spending. Notably, there is no limit on digital wallet payments like Apple Pay, which use biometric verification, and this will remain unchanged.
