The Financial Conduct Authority (FCA) has confirmed that banks and card providers will be given the power to set a maximum or unlimited single payment amount without the need to enter a four-digit PIN from March, effectively lifting the £100 contactless card limit. This change will allow cardholders to set their own individual limits or switch off contactless payments entirely, a feature already offered by some banks.

The FCA's decision comes despite its own survey showing little appetite among consumers and industry respondents for a change from the current limit. However, the regulator is encouraging card providers to give customers more control over their contactless payments. "We are giving consumers more choice and flexibility over their contactless payments," said a spokesperson for the FCA. "We believe this will help to make contactless payments more convenient and secure for everyone."

The £100 limit on contactless cards was introduced gradually, starting with a £10 limit in 2007, which was raised to £15 in 2010, £20 in 2012, and £30 in 2015. The limit was increased to £100 during the Covid pandemic. The FCA's decision to lift the limit will allow card providers to set their own maximum or unlimited single payment amounts, giving customers more flexibility over their contactless payments.

Some industry experts have welcomed the move, saying it will make contactless payments more convenient for customers. "This is a positive step forward for contactless payments," said a spokesperson for a major bank. "We are committed to giving our customers more control over their payments and making contactless transactions as seamless as possible." However, others have raised concerns about the potential risks of lifting the limit, citing the possibility of increased fraud and security breaches.

The FCA has said that it does not expect card providers to make immediate changes to the current limit from March, but they have the flexibility to do so. The regulator has encouraged card providers to give customers more control over their contactless payments, including the option to set their own individual limits or switch off contactless payments entirely. As the industry prepares for the change, customers are advised to check with their bank or card provider to see what options are available to them.

The lifting of the £100 contactless card limit is set to take effect from March, giving card providers time to implement the necessary changes. The FCA has said that it will continue to monitor the impact of the change and work with industry stakeholders to ensure that contactless payments remain secure and convenient for everyone.