Contactless payment limit could be scrapped by next year

• The Financial Conduct Authority (FCA) has proposed scrapping the current £100 cap on contactless card payments in the UK.
• This move aims to grant banks and card providers the flexibility to set their own transaction limits, allowing them to better meet customer needs and encourage innovation.
• Despite potential concerns regarding fraud, the FCA has reiterated that banks are obligated to reimburse customers for any unauthorised fraudulent transactions if a card is lost or stolen.
• The proposed changes, which could be implemented early next year, are currently open for public consultation until mid-October.
• This initiative is part of a wider set of measures from the FCA designed to support economic growth and align contactless card payments with digital wallets, which currently have no transaction limit.

IN FULL

Contactless card payments could become unlimited under plan to scrap £100 cap