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 for contactless card payments, without the need for a four-digit PIN, starting from March. This change will allow cardholders to set their own individual limits or switch off contactless payments entirely.

According to the FCA, banks and card providers will have the flexibility to make immediate changes to the current £100 limit, but it is not expected that they will do so immediately. The FCA is encouraging card providers to allow cardholders to set their own limits, or switch off contactless payments altogether. Some banks already offer this function.

The decision to lift the £100 contactless card limit has been met with mixed reactions from consumers and industry respondents. A survey conducted by the FCA showed that there was little appetite for a change to the current limit. However, the regulator is pushing forward with the change, citing the need for greater flexibility in contactless payments.

When contactless card payments were first introduced in 2007, the transaction limit was set at £10. The limit was gradually raised to £15 in 2010, £20 in 2012, and £30 in 2015. The Covid pandemic prompted a significant increase in the limit to £100 in 2020.

The FCA is encouraging card providers to offer cardholders the option to set their own limits, or switch off contactless payments entirely. This move is seen as a step towards greater flexibility and convenience in contactless payments. However, some experts have raised concerns about the potential risks associated with lifting the limit, including increased risk of fraud.

Card providers will have the power to set their own limits, or offer cardholders the option to set their own limits, from March. The FCA is urging card providers to take advantage of this flexibility and offer cardholders more control over their contactless payments. As the industry moves forward with this change, it remains to be seen how card providers will implement the new rules and what impact they will have on consumers.

The FCA's decision to lift the £100 contactless card limit is seen as a significant development in the world of contactless payments. As the industry continues to evolve, it is likely that we will see further changes and innovations in the way we make payments.