Millions of banking customers across the UK are being notified of a significant shift in how they can spend money using contactless cards. The fixed £100 limit for tap-and-go payments is being abolished, giving individual banks the power to set their own thresholds.
What is Changing with Contactless Payments?
The major change, confirmed to come into force from 19 March 2025, will see the blanket £100 cap removed. Financial providers, including major high street names like Nationwide, Lloyds, and NatWest, will now determine their own contactless spending limits. Furthermore, some banks may offer customers the ability to set personalised limits based on their own comfort levels and spending habits.
This move marks the end of a universal rule designed to curb fraud, raising immediate questions about the balance between convenience and financial security. The concern is that if a card is lost or stolen, a thief could potentially make larger unauthorised purchases without needing a PIN.
Expert Advice on Managing the New Rules
Financial experts are urging customers to be proactive. Nicola Morgan, a financial services expert at confused.com, acknowledged the convenience but highlighted the need for caution. "For many, contactless has become the simplest way to pay," she said. "But it’s important to balance convenience with security."
She offered several practical tips for customers to safeguard their finances under the new system:
Check your bank’s fraud protections: Understand your provider's policy on reimbursing unauthorised contactless transactions and how quickly refunds are processed.
Set personalised limits: If your bank offers the option, choose a contactless limit that matches your typical spending to minimise potential loss.
Use mobile wallets where possible: Payments via smartphones using Apple Pay or Google Pay often include an extra layer of biometric security, like fingerprint or facial recognition. Research indicates over 35% of UK adults already use these methods for everyday spending.
Security Concerns and Customer Control
The lifting of the fixed limit inevitably prompts concerns about an increased threat of fraud. Without the requirement for a PIN, a lost or stolen card becomes a greater liability. The onus will now fall more heavily on both banks to implement robust fraud detection systems and on customers to manage their settings wisely.
While the new rules offer greater flexibility, the final impact will depend on the decisions made by individual providers. It remains to be seen what limits each bank will introduce and how widely they will roll out customer-controlled limit settings. For now, UK account holders are advised to stay informed by their bank and review their security preferences ahead of the March deadline.
