UK Contactless Limit 2026: What Businesses Need to Know

For years the rule was easy to remember: contactless up to £100, PIN above that. That's changed. Since March 2026, there's no fixed regulatory contactless limit in the UK. Banks and payment providers with strong fraud controls can now set their own limits instead.

In practice, most customers won't notice much yet. But it's useful to understand what's changed, why customers still get asked for their PIN, and what you need to do at the till. Here's the plain English version.

The short version

What changed

Until March 2026, the rules set out by the Financial Conduct Authority allowed contactless payments without extra checks up to:

• £100 for a single payment, and
• a total of £300 across several contactless payments, or no more than five in a row.

After that, the customer's bank would ask for a PIN or another check.

In December 2025, the FCA confirmed it would give banks and payment providers more flexibility. From 19 March 2026, the rules allow them to skip the extra checks on contactless payments they judge to be low risk, rather than following fixed limits. They can keep the old limits, set new ones or let customers choose.

The FCA also said that, based on industry feedback, most banks and payment providers were likely to keep their existing limits for the foreseeable future. So for now, many customers will still find that £100 is roughly where their card stops working by tap.

Why customers still get asked for their PIN

Even under the limit, a contactless card can be declined or ask for a PIN. Common reasons:

• Too many taps in a row. Banks still track how many contactless payments have been made since the last PIN.
• A risk check. Something about the payment looked unusual to the bank.
• The customer's own limit. They may have set a lower limit in their banking app or turned contactless off.
• A new card. Some banks ask for a chip and PIN payment before contactless works.

None of these are faults with your machine. Ask the customer to insert their card and enter their PIN.

Phones and watches are different

Apple Pay, Google Pay and Samsung Pay check the customer on the device itself, with a fingerprint, face scan or passcode. Because of that, they're not bound by the same contactless card limits. A customer whose card won't tap for £150 may well be able to pay that amount with their phone.

At the till, it's worth saying: "Would you like to try your phone?" It often solves the problem faster than hunting for the card's PIN.

What it means for your card machine

You don't need to do anything. The limit is set and checked by the customer's bank, not your card machine or provider. Your machine will simply follow what the bank says, whether that's approve, decline or ask for a PIN.

Make sure your machine takes chip and PIN. If you only use Tap to Pay on your phone, customers who are asked for a PIN may not be able to pay. Some providers support PIN entry on the phone screen for Tap to Pay. Check yours, or keep a chip and PIN reader handy. Our guide to Tap to Pay on iPhone and Android explains how it works.

Train your staff. A quick line about what to do when contactless fails saves awkward moments at the till.

Which businesses are affected most?

• Restaurants and bars, where bills often go over £100. Customers may expect contactless to work for the whole bill.
• Shops selling higher value items, from electronics to furniture.
• Trades, where a job can easily be several hundred pounds.
• Taxis on long fares.

For low value sales, such as coffee or newspapers, you're unlikely to notice any difference.

Fees and fraud

The contactless limit doesn't change what you pay to accept a payment. Your provider charges the same rate whether the customer taps or uses chip and PIN.

What about fraud? The FCA has said existing consumer protections remain, including refunds to cardholders in cases of unauthorised fraud, such as a lost or stolen card. Liability for fraud is generally between the banks and providers involved, but follow your provider's rules on checking cards, especially for high value sales.

Practical tips for the till

• Put a small sign up: "Contactless, chip and PIN, Apple Pay and Google Pay welcome."
• If a card is declined, ask the customer to insert it and enter their PIN.
• Suggest a phone or watch for bigger amounts.
• For large sales, consider asking for chip and PIN anyway, as some providers advise extra checks.
• Make sure your reader's software is up to date.

A short history of the UK contactless limit

FAQs

What is the contactless limit in the UK?

There's no longer a fixed regulatory limit. Since 19 March 2026, banks and payment providers can set their own. Many have kept £100 for now.

Can a customer pay more than £100 by contactless?

It depends on their bank. With a phone or watch, higher amounts usually work, because the customer is checked on the device.

Why did the card machine ask for a PIN under £100?

The customer's bank decided to check, usually after several contactless payments in a row, or because the payment looked unusual.

Do I need to update my card machine for the new rules?

No. The limit is set by the customer's bank. Keep your reader's software up to date as normal.

Does contactless cost more than chip and PIN?

No. Most providers charge the same rate for both.

Can customers set their own contactless limit?

Many banks let customers set a lower limit or turn contactless off in their app, and the FCA has encouraged banks to offer this.