Starting from March 19, 2026, a new contactless payment rule will come into effect in the UK, impacting how banks handle contactless card transactions. Currently, most banks restrict the maximum contactless payment to £100 per transaction, but the new regulation will allow firms to raise this limit if they choose. This change aims to enhance customer convenience and potentially improve sales for retailers that depend on quick payment methods.

A recent analysis by Defaqto highlighted that only about 42% of the banks and building societies reviewed permit customers to adjust their contactless card limits. While some banks have already embraced the practice of allowing users to set their limits, others lag in offering this feature, reflecting disparities in financial service delivery. Additionally, firms are encouraged to provide options for customers to disable contactless features entirely, a feature that is already in place with many high street banks.

The call for banks to adopt more flexible contactless payment features comes as consumers increasingly seek control over their financial transactions. With a significant number of account providers still not offering these options, there may be a need for more regulatory pressure to ensure customer-friendly practices. As the March deadline approaches, how banks adapt to these changes could significantly impact customer satisfaction and trust in their banking services.