Contactless Card Limit to be Lifted from March, Allowing for Customizable Payments

Millions of people in the UK will soon be able to set their own contactless card payment limits or even have no limit at all, according to a recent announcement by the Financial Conduct Authority (FCA). The move, set to take effect from March, will give banks and card providers the power to set a maximum - or unlimited - single payment amount without the need to enter a four-digit PIN.

The FCA is encouraging banks to allow cardholders to set their own individual limits or switch off contactless entirely, with some banks already offering this function. This decision comes despite the FCA's own survey showing little appetite among consumers and industry representatives for the change.

The FCA's move is aimed at providing greater flexibility and convenience for contactless card users, who will be able to choose their own payment limits or opt out of contactless payments altogether. According to the FCA, this change will allow cardholders to better manage their finances and reduce the risk of unauthorized transactions.

The £100 contactless card limit, which has been in place since 2015, has been a topic of debate in recent years. While some argue that it is a necessary security measure, others see it as a hindrance to the convenience of contactless payments. The FCA's decision to lift the limit is likely to be welcomed by those who value the flexibility and speed of contactless transactions.

The change will not be mandatory, and banks will be free to decide whether to offer customizable payment limits or not. However, the FCA is urging banks to take advantage of the new rules and provide their customers with more control over their contactless payments.

According to the FCA, the decision to lift the contactless card limit is part of a broader effort to modernize the UK's payment systems and make them more user-friendly. The FCA's survey found that while some consumers were concerned about the potential risks of contactless payments, many others saw the benefits of greater flexibility and convenience.

The FCA's announcement has been welcomed by some consumer groups, who see it as a step in the right direction towards greater financial inclusion and flexibility. However, others have raised concerns about the potential risks of lifting the contactless card limit, particularly for vulnerable consumers who may be more susceptible to unauthorized transactions.

The FCA's decision to lift the contactless card limit is set to take effect from March, and banks will be given the power to set their own maximum - or unlimited - single payment amounts. While the change is likely to be welcomed by many contactless card users, it remains to be seen how banks will implement the new rules and what impact they will have on consumer behavior.

In a statement, the FCA said: "We are committed to making payments more convenient and secure for consumers. By giving banks the power to set their own contactless payment limits, we are providing greater flexibility and choice for cardholders."