Plans to scrap £100 limit on contactless card payments

The change would allow banks and other providers to set their own limits.

The proposals from the Financial Conduct Authority (FCA) would mean entering a PIN to make a payment at shops could become even rarer.

If the plans get approved, purchased of more than £100 could be made using contactless payments.

The limits on contactless payments has increased since they were introduced in 2007 with an initial £10 limit.

From there it reached £15 in 2010, £20 in 2012, £30 in 2015 and £45 in 2020, before it reached its current £100 limit in October 2021.

David Geale, the FCA’s executive director of payments and digital finance, said the suggested changes to contactless limits were a result of recent advances in smart technology and fraud controls.

He said: “While we wouldn’t expect to see immediate changes to the limits by firms, they would have the flexibility to make payments more convenient.

“People are still protected; even with contactless, firms will still refund your money even if your card is used fraudulently.”

A recent public consultation launched in March suggested that the public would like to see the contactless limit rise to between £150 and £250.

The FCA said it did not expect any changes to be made quickly, and said technology advances mean shoppers could even be given the option to set their own limits.