Shake-up from FCA
New rule for UK shoppers paying at tills from Thursday
A huge change to how UK shoppers pay at tills is coming next week under new rules. The Financial Conduct Authority (FCA) has announced a big shake-up from this week – which will see contactless card limits axed.
The current rules mean people can make payments of up to £100 per transaction when using physical contactless cards. But from Thursday, March 19, banks and payment providers with strong fraud controls will be able to set their own limits.
This does not impact mobile payments which will continue to operate without a fixed £100 limit. Higher payments though mobile wallets are possible because the phone verifies your identity in a similar way to a PIN is unique to you – for example via Face ID or a thumbprint.
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The verification is required for all mobile payments regardless of value. David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay.
“We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
The limit was last changed in 2021, when it was increased by then Conservative Party Chancellor Rishi Sunak.
The hike was made to £100 that year. At the time, David Postings, Chief Executive of UK Finance, said: “Contactless payment has proved very popular with consumers and an increasing number of transactions are being made using contactless technology.
“The increase in the limit to £100 will allow people to pay for higher value transactions like their weekly shop or filling up their car with fuel.”
Mr Postings went on, adding in a statement: “The payments industry has worked hard to put in place the infrastructure to enable retailers to update their payments systems so they can start to offer their customers this new higher limit.”