The contactless card payment limit is set to change this week. From Thursday, March 19, the £100 cap on contactless spending will be scrapped, ending the current rule set by the Financial Conduct Authority (FCA). Under the new system, it will be up to banks and payment providers to decide whether to keep, increase or remove their contactless limits.

The FCA said the change reflects how people now pay, with contactless becoming the “go-to way to pay” for many customers. The regulator added: “Banks and payment providers must have strong fraud controls when processing contactless transactions. The greater flexibility will incentivise firms to step up their fraud prevention, giving consumers greater protection and peace of mind.

“Crucially, existing consumer protections remain in place. Consumers must be reimbursed in unauthorised fraud cases, such as if their card is lost or stolen.”

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.”

Experts say the change could still affect how people manage their spending.

Charlie Evans, personal finance expert at Compare the Market, said: “The change gives millions of customers and their banks greater control over their contactless limits, allowing them to set a higher limit or opt out of contactless altogether.

“Although this change is not compulsory, some banks may choose to keep the £100 limit in place.

“While this gives consumers more flexibility, it also raises potential budgeting considerations. Our recent consumer survey revealed that a third (33%) of Brits sometimes regret the cost of a spontaneous or unplanned purchase, and over one in 10 (14%) think a spontaneous purchase affects their budget more than expected.

“Banks are being encouraged to let customers set their own limit or turn off the contactless option, allowing shoppers to pause and consider their purchase and manage their spending in a way that works for them.”

Despite the rule change, major banks have told the Express that they are not planning to increase their limits for now.

An HSBC spokesperson said: “I can confirm we have no planned changes to our contactless limit.”

A Santander spokesperson said: “The Santander contactless limit is remaining at £100. Customers can also switch off contactless, or reduce the limit to below £100 if they like.”

Lloyds Banking Group spokesperson said: “In terms of what’s currently in place, Lloyds, Halifax and Bank of Scotland customers can already set their own contactless payment limits in our apps, in £5 steps, up to £100, and we are committed to keeping that flexibility. We currently do not have plans to change the limits.”

TSB spokesperson said: “TSB won’t be increasing the cap beyond the £100 it’s currently set at – although customers can use the app to remove the contactless option altogether. And yes, customers can also use the app to lower the cap should they wish.”

Barclays spokesperson said: “At the current time, we will continue to apply the same limit (£100) to contactless payments.

“Personal banking customers with a Barclays debit card can set their own contactless limit, up to £100, within their Barclays app. This can be changed, any time, by going into the ‘Your Cards’ section of their app, and within that, ‘Card Limits and Controls’.”