Summary
The UK's Financial Conduct Authority (FCA) has decided to lift the current contactless card payment limit of £100. Banks and card providers will have the option to set their own payment limits or go unlimited, and consumers can also choose to set personal limits or disable contactless payments.
Key Facts
- The new rules allowing changes to contactless payment limits will start in March.
- Banks can set payment limits or allow unlimited payments without a PIN.
- The FCA encourages banks to let customers set their own limits or turn off contactless payments.
- The current contactless limit in the UK is £100, which was gradually increased over time.
- Contactless payments using a smartphone don't have a spending cap, relying on security like thumbprints.
- The FCA survey showed most consumers (78%) do not want the limit changed.
- People express concern that unlimited contactless limits could lead to increased spending and potential financial abuse.
- The UK's Cash Access UK is opening more shared banking hubs to maintain access to cash.
