👍United Kingdom🇬🇧: FCA prepares to lift contactless payment limits

👍United Kingdom🇬🇧: FCA prepares to lift contactless payment limits

The UK Financial Conduct Authority (FCA) plans to allow card issuers to set their own contactless payment limits for their customers. For instance, this is already the case in the United States🇺🇸.

▶️This initiative is part of the 50 measures outlined by the FCA in a letter to the Prime Minister in January, aimed at supporting economic growth. Financial institutions are expected to offer flexible and innovative digital solutions.

▶️If a customer’s card is used fraudulently, the issuer will still be required to reimburse the lost funds. However, variable limits set by different banks could create challenges for merchants due to a lack of uniformity. Terminals will continue to request a PIN once the threshold is exceeded, but scrapping the current fixed cap (set at £100) could slow down everyday transactions.

▶️Context: according to the UK Finance Annual Fraud Report 2025, fraud levels are low, at about £1.3 for every £100 spent on contactless transactions.

▶️Proposals on this issue will be discussed until October 15, 2025.

#news #Europe #fraud

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