Warning for anyone with a UK bank account over card payment changes | Personal Finance | Finance
A major change to how you make card payments is coming in. The current £100 limit on contactless card payments is to be changed from March 2026.
Contactless card payments became an option in 2007 with a £10 limit on payments. The limit was increased gradually, up to £15 in 2010 and then to £30 in 2015.
This was further increased to £45 in 2020 and then to £100 in October 2021. Under new rules announced by the Financial Conduct Authority, bank providers will be able to set a maximum themselves, or have no limit at all on how much you can pay through contactless.
The new limits will come in from March 19. Although the change will grant further freedom to consumers, industry experts say this is not the main objective of the change.
Chris Jones, managing director at payment consultancy PSE Consulting, said: “Lifting the contactless limit is not really about letting people spend more with a tap. It is about shifting responsibility across the payments ecosystem.
“By lifting the contactless cap, the FCA is stepping away from a blunt, one size fits all rule and putting the onus on banks and card providers to manage their own risk exposure levels. That significantly raises the bar for the industry.”
Speaking about the benefits for shoppers, Mr Jones said: “For consumers, the real win is not higher limits, but greater control. Being able to set personal thresholds, switch contactless on or off instantly, and manage settings through an app delivers far more value than mandating a simple ceiling.
“Banks that treat this as a trust building opportunity will strengthen customer relationships. Those that rush to increase limits without clear safeguards and communication risk eroding confidence and attracting scrutiny from both regulators and customers.”
Risk of scams
Concerns have also been raised that the change could lead to a rise in scams. Jonathan Frost, director of Global Advisory for EMEA at BioCatch, said: “When considering the FCA’s lifting of contactless limits, it’s important to assess its potential indirect effects. The direct impact is clear, giving consumers greater convenience while maintaining fraud protection.
“However, FCA estimates indicate the change could cause up to £31.3million per year in additional contactless fraud, representing a 131 percent increase. The core question is whether raised limits will trigger long-term impacts, such as shifts in criminal behaviour.”
He said some retailers prefer not to accept contactless payments because of the security risks. Mr Frost said: “There is also a broader ecosystem impact to consider. Some retailers are reluctant to accept contactless payments due to the abuse of chargeback fraud.
“This friction risks undermining the very convenience the policy is designed to deliver. Given these dynamics, banks should prioritise the implementation and continuous improvement of real-time fraud detection systems that focus on customer behaviour. This will help stop fraud by considering all customer behaviour rather than just focusing on card use.”
Georgina Colman, founder of discount scheme Purpl, warned that opening up the contactless limit may not suit all consumers. She said: “Increasing the contactless spending limit might feel like a small convenience, but for many disabled people and those with long-term conditions, it carries real risks.
“For people with ADHD or other neurodivergent conditions, impulsivity and dopamine-seeking behaviours are well documented, and higher frictionless spending limits could make it far easier to overspend without realising until the damage is done. When disabled people are already more likely to face financial pressure, this kind of change shouldn’t be brushed off as harmless.”
She said that people with other health conditions could be put at risk with the changes. Ms Colman said: “People with dementia, learning disabilities or cognitive impairments could be placed at greater risk of financial abuse if higher contactless limits make it easier for others to coerce or persuade them into spending money. Contactless payments remove a natural pause that can be protective, and if limits are lifted, banks must ensure robust, optional controls and alerts are in place, so disabled people and their families can actively choose safeguards rather than being exposed to greater risk by default.”
She said she believes that contactless limits should be set on an individual basis and that they should be adjustable. The consumer advocate said: “A single higher blanket limit assumes everyone manages money in the same way, which simply isn’t true for many disabled people and those with long-term conditions.
“Banks already have the technology to offer tailored caps, real-time alerts and easy controls, and using these would support independence while also protecting people who are more vulnerable to impulsive spending or financial exploitation.”
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