19 January 2026
The Financial Conduct Authority has announced changes to its rules on contactless payments, giving banks and payment providers greater flexibility over transaction limits.
Under the new framework, firms with strong fraud controls will be able to set their own contactless limits and are encouraged to allow customers to choose their own limit or switch contactless payments off.
The regulator said contactless use has continued to grow, with research from Barclays showing almost 95% of eligible in-store card transactions were made using contactless payments in 2024.
The FCA said existing consumer protections will remain in place, including mandatory reimbursement in cases of unauthorised fraud such as lost or stolen cards.
David Geale, executive director of payments and digital finance at the FCA, said: “Contactless is people’s favoured way to pay. We want to make sure our rules provide flexibility for the future, and choice for both firms and consumers.”
The new standards follow a public consultation on contactless payments and form part of wider measures outlined by the regulator to support growth and digital innovation.
The rule changes will take effect in March 2026, after which firms can decide whether and when to adjust their contactless limits and must clearly communicate any changes to customers.
"I’d be happy to ban Labour MPs if we think it would make a difference?"
Our members have already started the conversation about the "unfairness" of the rates relief for pubs, with none for retailers, over on the forum, which you can access by simply logging into the Bira website. See what fellow retailers think of this decsion and have your say over on Bira Connect.
Bira's advocacy takes your voice to the heart of Parliament
Bira is at the forefront of championing the cause of independent traders and shopkeepers across Britain.
Our campaigns cover a wide spectrum of issues crucial to the success of independent traders including:
- Combatting the rising tide of retail crime
- Advocating for changes in legislation that promote fairness and flexibility
- Fighting for fairer business rates
- Overall reducing the regulatory burden
Image credit: Maryia/stock.adobe.com
Latest News
-
Sellers of castor beans and rosary peas could face licence-only sales under new proposals
Sellers of castor beans and rosary peas would only be allowed to sell them to individuals with a valid licence.
-
New banknotes to bring updated security features for retailers
The Bank of England has confirmed that the next series of banknotes will feature an Atlantic puffin, barn owl, buff-tailed bumblebee and European hedgehog.
-
SIA launches survey ahead of Martyn’s Law
The Security Industry Authority (SIA) is asking businesses and organisations that could be affected by Martyn’s Law to complete a short survey on how prepared they feel for the incoming legislation.
-
£2,000 grant available to retailers taking on young apprentices
Small and medium-sized retailers taking on young apprentices can receive a £2,000 government payment for each eligible apprentice.