IE only asks the question because the two-tier principle is now being extended across the justice system, TV Licensing, bank account spending limits, State Pension vs Pension Credit and many other walks of life. Two recent cases highlight the point; White Brit Paul Doyle received 21 years jail for injuring 134 people in Liverpool, no fatalities, whilst BAME heritage Demiesh Williams received just 5 years after beating a man to death over a queue-jumping argument.
Thankfully we haven’t yet reached the point where contactless card limits are set by ethnicity, or religion. That day may come of course. But the division of haves vs have nots is not something that needs to be enshrined in regulation either. The translation we get from this FCA release below is that banks could set a higher limit for certain customers, presumably the HNW ones – if they request it. It also hints that hospitality and retail might request a higher limit for favoured, perhaps corporate, customers.
Some may see that as another step towards a divided society, where wealth buys privilege and freedom that the majority cannot have.
In the end, that overt inequality on everything from criminal justice bias, to daily spending limits, builds resentment and unrest – it unpicks the social contract that binds a society together as equals. It is a dangerous road to go down. Here’s the word;
People could find it easier to pay using contactless, thanks to greater flexibility and the removal of red tape by the Financial Conduct Authority (FCA).
Banks and payment providers with strong fraud controls will be able to set their own limit for contactless payments, allowing them to better respond to changing consumer demands, inflation and new technology. They are also being encouraged to let customers set their own limit, or turn contactless off altogether, as many high street banks already do.
People are using contactless as the go-to way to pay. Research by Barclays found that almost 95% of all eligible in-store card transactions were contactless in 2024.
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.”
Kate Nicholls, Chair 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.”
The new standards follow a public discussion and consultation around contactless payments, and how to make paying more convenient for consumers, while supporting growth. This work is one of around 50 measures that the regulator outlined in a letter to the Prime Minster in January to support economic growth and prioritise digital solutions.
The rule changes take effect in March 2026, after which it will be up to firms if and when they take up the greater flexibility to change any contactless limits. Those that do, will need to communicate the changes clearly to their customers.
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