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Bank Cards

Question for Treasury

UIN 5230, tabled on 21 May 2021

To ask the Chancellor of the Exchequer, what representations he has received from industry on increasing the contactless card limit in 2021; and if he will make a statement.

Answered on

27 May 2021

The legal contactless payment limits are set by Financial Conduct Authority (FCA) through regulator rules, specifically the Strong Customer Authentication technical standards. Following a public consultation and with Treasury approval, as required by the Payment Services Regulations, the FCA increased the legal single contactless payment limit to £100 on 3 March 2021.

Any changes to operational contactless limits up to the new legal limits are at the discretion of payment service providers; the Government understands that industry is preparing to implement new higher operational contactless limits before the end of the year and welcomes payment service providers and retailers working together to that end.

Other jurisdictions, including Australia, Canada and the US, have all recently increased their contactless limits to over £100 in their equivalent currencies and I understand the changes in those countries have been positive as consumers and businesses realise the benefits from these new limits.

Ministers routinely meet with and receive representations from a range of private sector stakeholders. Transparency releases are published on a quarterly basis and are publicly available on GOV.UK.

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