The FCA’s rule change means the default £100 limit no longer applies. Instead, banks can now decide how high, or low, their own limits should be. This follows an FCA announcement in December 2025, signalling its intention to give firms greater flexibility over contactless payments.
Even though the cap has been removed, UK banks are largely sticking with the familiar £100 limit for now. Major banks including Barclays, HSBC, Lloyds, NatWest, Santander, Monzo, and others have confirmed they’re not increasing limits immediately.
The FCA has opened the door to a more modern and flexible contactless payments ecosystem. With banks prioritising fraud protection and infrastructure updates, UK consumers won’t feel the full impact right away.
The removal of the national limit is a future‑focused change, enabling innovation while keeping customer protection at its core.