UK banks keep £100 limit for contactless card payments despite FCA scrapping it

## Summary
Photograph: Caia Image/Alamy View image in fullscreen Banks may not be changing the limits immediately but they are free to do so from now on. Photograph: Caia Image/Alamy UK banks keep £100 limit for contactless card payments despite FCA scrapping it Banking lobby group says lenders are holding off changes as there is no widespread consumer demand for now Explainer: What will happen when the £100 limit is scrapped? UK Finance, the banking lobby group, said banks were holding off on immediate changes because there was no widespread consumer demand and card terminals in shops would need to be altered to allow for larger contactless payments. Explore more on these topics Contactless payments Banks and building societies Consumer affairs Banking Financial Conduct Authority Credit cards Debit cards news Share Reuse this content

## Article Content
Banks may not be changing the limits immediately but they are free to do so from now on.
Photograph: Caia Image/Alamy
View image in fullscreen
Banks may not be changing the limits immediately but they are free to do so from now on.
Photograph: Caia Image/Alamy
UK banks keep £100 limit for contactless card payments despite FCA scrapping it
Banking lobby group says lenders are holding off changes as there is no widespread consumer demand for now
Explainer: What will happen when the £100 limit is scrapped?
Shoppers will not be able to splash unlimited amounts on contactless cards despite the lifting of a £100 cap on payments as Britain’s banks held off on making changes.
The official limit on individual contactless transactions on credit and debit cards has been scrapped but the UK’s biggest high street and challenger banks have kept the £100 ceiling in place.
The Financial Conduct Authority
made the rule change
to allow banks to respond to changing consumer demands, inflation and new technology, but Barclays, HSBC, Lloyds, Nationwide, NatWest, and Santander have said they will keep the £100 limit.
Among the digital-only banks, Monzo has said it will not be changing its limit, while Starling and Revolut say they have not yet made a decision.
UK Finance, the banking lobby group, said banks were holding off on immediate changes because there was no widespread consumer demand and card terminals in shops would need to be altered to allow for larger contactless payments.
Banks may not be changing the limits immediately but they are free to do so from now on. Many, such as Lloyds and Santander, allow customers to set their own limits in £5 increments up to £100.
Contactless payments are the most popular way to pay among consumers, according to UK Finance, with 67% of credit card and 76% of debit card transactions completed by tapping. The average value of a contactless payment is just under £18.
It is up to the banks to make the changes but they must communicate them clearly with consumers, according to the FCA. A spokesperson said: “We want to make sure our rules provide flexibility for the future, and choice for firms, merchants and consumers.
“With strong fraud controls already in place and payment technology continuing to improve, this is about giving firms room to innovate while keeping consumer protection front and centre.”
There is concern that having higher or nonexistent caps would enable criminals to make much bigger purchases on stolen cards. The City watchdog has said it expects banks to have fraud checks in place before raising or scrapping limits, which could mean customers being called or texted if they make a large purchase.
The ease of making large purchases with contactless payments has also raised concern about people being able to control their money and budget properly, because they may be less likely to track how much is leaving their wallet.
There is no limit on payments using digital wallets such as Apple Pay, and this will not change under the new rules. These transactions are allowed because smartphones verify identity with facial recognition or a thumbprint.
Explore more on these topics
Contactless payments
Banks and building societies
Consumer affairs
Banking
Financial Conduct Authority
Credit cards
Debit cards
news
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## Expert Analysis

### Merits
- A spokesperson said: “We want to make sure our rules provide flexibility for the future, and choice for firms, merchants and consumers. “With strong fraud controls already in place and payment technology continuing to improve, this is about giving firms room to innovate while keeping consumer protection front and centre.” There is concern that having higher or nonexistent caps would enable criminals to make much bigger purchases on stolen cards.

### Areas for Consideration
- A spokesperson said: “We want to make sure our rules provide flexibility for the future, and choice for firms, merchants and consumers. “With strong fraud controls already in place and payment technology continuing to improve, this is about giving firms room to innovate while keeping consumer protection front and centre.” There is concern that having higher or nonexistent caps would enable criminals to make much bigger purchases on stolen cards.
- The ease of making large purchases with contactless payments has also raised concern about people being able to control their money and budget properly, because they may be less likely to track how much is leaving their wallet.

### Implications
- Banks may not be changing the limits immediately but they are free to do so from now on.
- Photograph: Caia Image/Alamy View image in fullscreen Banks may not be changing the limits immediately but they are free to do so from now on.
- Photograph: Caia Image/Alamy UK banks keep £100 limit for contactless card payments despite FCA scrapping it Banking lobby group says lenders are holding off changes as there is no widespread consumer demand for now Explainer: What will happen when the £100 limit is scrapped?
- Shoppers will not be able to splash unlimited amounts on contactless cards despite the lifting of a £100 cap on payments as Britain’s banks held off on making changes.

### Expert Commentary
This article covers banks, contactless, payments topics. Notable strengths include discussion of banks. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 549.