A change in banking rules effective Thursday may impact how customers make payments. Companies with robust anti-fraud measures will soon have the option to set their own limits for contactless card transactions. While major UK banks intend to maintain the current £100 limit initially, they may adjust it in the future to provide more flexibility.
Various financial providers are monitoring the situation and will notify customers of any modifications. The recent rule adjustments, scheduled to start on March 19, aim to enable firms to adapt to evolving consumer needs, inflation, and technological advancements. Companies opting to alter their limits must communicate these changes clearly to customers, as advised by regulators.
Furthermore, firms are encouraged to allow customers to customize their limits or disable contactless payments entirely, a feature many banks have already implemented. These rule revisions may also prompt firms to reconsider cumulative contactless strategies in the future.
Traditionally, consumers had to enter a PIN after a certain number of transactions or spending thresholds. The surge in popularity of contactless payments has led to incremental increases in transaction limits over time.
Barclays’ data reveals that nearly 95% of eligible in-store card transactions were contactless in 2024, showing a significant rise in contactless usage compared to previous years. As of December 2025, contactless transactions accounted for the majority of credit and debit card transactions. The average value of a contactless payment stands at approximately £18, based on UK Finance statistics.
Consumer protections against unauthorized fraud remain intact, ensuring reimbursement in cases of card loss or theft. Additionally, higher payments through mobile wallets are possible, with identity verification through methods like facial recognition or thumbprints.
The review of contactless card limits was one of many measures outlined by regulators in support of economic growth. Here is a summary of how contactless card features currently operate for various banks and building societies:
– NatWest does not plan to change the contactless limit immediately but will inform customers of any updates.
– Santander customers can adjust their contactless limits in £5 increments or disable contactless.
– Lloyds, Halifax, and Bank of Scotland brands allow customers to set their own contactless limits in £5 increments, up to £100.
– Barclays customers can set their own contactless limit within the app, up to £100.
– Nationwide customers can customize contactless limits below £100 within their banking app.
– TSB currently maintains the £100 contactless limit and allows customers to lower it or disable contactless via the app.
– Starling Bank customers can set their own contactless limit within the app.
– Monzo customers can adjust their contactless limits or disable contactless payments in the app.
– Revolut customers can set monthly spending limits but cannot set lower contactless limits than £100.
These banks are continuously assessing the situation and may adjust their limits in the future.