Major checkout shake-up could see key payment rule scrapped in all UK shops

A major change could be coming to checkouts across the UK (Picture: Getty Images)

Cash might once have been king, but now many of us simply tap card machines with our phone or a smart device – with 85% of people nationwide making contactless payments at least once a month, according to UK Finance. 

But since 2021, there have been two strict limits imposed on these types of transactions – the first is the contactless cap. 

The strict rule means contactless transactions are only authorised up to the cost of £100. For any shopping that costs more than this, you’d have to do it the old fashioned way, inserting your card and entering your PIN number.

The second limit is all to do with the number of contactless payments an individual can make without using an additional form of authentication. Currently this sits at either a cumulative total of £300 across several contactless transactions, or no more than five consecutive contactless payments. Once you hit the £300 mark or make five consecutive payments, you’ll once again be asked to use a chip and PIN machine. 

However, a huge shake-up might be in the works that could change the way we pay at checkouts across the UK.

85% of people in the UK make a contactless payment at least once a month (Picture: Getty Images)

What changes to contactless payments are being considered?

In a bid to boost the economy, the Financial Conduct Authority (FCA) is currently reviewing contactless limits to see if we can improve the UK’s payment system and bring it in line with the US, where there is no fixed limit.

As such, it asked consumers to provide feedback about the restrictions imposed on these types of payments.

The consultation has since concluded (ending on May 9, 2025) and several options are now being deliberated as they go through the public’s responses. This includes the possibility of increasing the contactless cap to £200 (or possibly even higher) or axing it completely.

The FCA is also considering introducing a brand new risk-based exemption for in-person providers which would give banks and payment providers more ability to set their own contactless payment limits. 

This is already the case with the likes of Apple Pay and Google Pay, which have no limit in the UK (although retailers can impose their own limits on these).

The limits to contactless payments might soon change (Picture: Getty Images)

Are there any potential issues with scrapping contactless limits?

There is one big concern to keep in mind when it comes to any potential changes to contactles payments – fraud. 

Fraud is one of the main pitfalls of contactless transactions, as criminals and unauthorised users are often able to make payments using lost or stolen cars without PINs.

Last year alone, contactless fraud accounted for an eye-watering loss of £41.5million in the UK.

The FCA notes the risk associated with contactless payments but claims ‘such fraud is a very small part of total unauthorised fraud’. And while fraud-detecting technologies are constantly evolving, it ‘expects advances will continue to address new types of fraud’. 

But there is good news – regardless of the outcome of the review, the FCA has confirmed that consumer protections will remain the same, with customers being refunded by banks for fraudulent transactions made on lost or stolen cards. 

When will the contactless payment cap change?

This review is part of a wider plan to modernise the UK’s payment system and support economic growth.

It’s not yet known when exactly potential changes to contactless payments could come into force in the UK, but a decision is expected to be made later this year after the FCA has reviewed the feedback to its consultation. 

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