A new contactless payment rule is now in force, affecting shoppers at major UK supermarkets including Tesco, Asda, Morrisons, Sainsbury's, Aldi, and Lidl. Banks and payment providers can now set their own limits for contactless card payments, under new rules from the Financial Conduct Authority (FCA).
Higher Spending Limits
The change means you can now spend more than £100 simply by tapping your contactless card. The FCA has stated that banks and payment providers, provided they have strong fraud controls in place, can set their own limit. After being approached by Birmingham Live, some major banks confirmed they were reviewing their contactless card limits for 2026 following the rule change in March.
Impact on Supermarket Shoppers
It is hoped this will make life easier for supermarket shoppers, as bills rise above £100 due to macroeconomic factors such as the Iran war. With food inflation soaring, £100 does not go as far as it used to in UK retailers like Asda, Tesco, Morrisons, Sainsbury's, Aldi, and Lidl. Which? has previously warned that grocery prices are being hit hard, forcing consumers to spend more.
Flexibility for Providers
The FCA said it did not expect card providers to make immediate changes to the current limit, but they now have the flexibility to do so. Indeed, many big banks have confirmed the limit will not change. For instance, Lloyds and Santander allow customers to set their own limits in £5 increments up to £100. However, it is worth checking with your financial provider, as an FCA spokesperson said: “We want to make sure our rules provide flexibility for the future, and choice for firms, merchants and consumers.”
Consumer Protection
The FCA reminds people that even though major banks may not be changing the limits immediately, they are free to do so from now on. The FCA added: “With strong fraud controls already in place and payment technology continuing to improve, this is about giving firms room to innovate while keeping consumer protection front and centre.”
Industry Reaction
Kate Nicholls, chairwoman of UKHospitality, said: “Making life easier for consumers is a positive for any hospitality and high street business, and I’m pleased the FCA is bringing forward this change. Contactless has increasingly become the preferred payment method of choice for many people and lifting the limit can mean quicker and easier experiences for consumers. While many people still prefer to use cash or chip and pin, this change adds much-needed flexibility for providers and consumers.”
