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Car dealers could soon be selling vehicles via contactless as FCA launches consultation

  • Regulator seeks views on scrapping or increasing £100 contactless card limit
  • The Financial Conduct Authority said one option put forward is to allow firms to set their own limits
  • Move could pave the way for cars to be sold at the tap of a card

Time 7:52 am, March 17, 2025

Car dealers may soon be able to sell vehicles using contactless card payment after a new consultation launched by the Financial Conduct Authority (FCA).

The UK’s financial regulator has asked for opinions about whether the rules, limiting contactless card transactions, should be amended.

One option is increasing the current £100 limit but the body is also seeking views on removing the cap altogether, with a view to benefiting households, businesses and economic growth.


Such a scenario would mean that cars worth hundreds of thousands of pounds could be sold with just the tap of a card.

The FCA says said one option put forward is to allow firms to set their own limits, in line with current regulations in the US.

The ‘engagement paper’ launched by the regulator forms part of work announced in January in a letter to Prime Minister Sir Keir Starmer to support growth.

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Any changes would need to support good customer outcomes as required by the Consumer Duty rules, the FCA said.

David Geale, executive director of payments and digital assets at the FCA, said: ‘Currently 85% of people in the UK make contactless card payments each month. This is the perfect opportunity to explore whether we can improve and increase trust in the UK’s payments system.’

Emma Reynolds, economic secretary to the Treasury, added: ‘The FCA’s review of the contactless payment limits, including removing the £100 limit on individual payments, is a welcome step to ensure that families can safely benefit from more flexibility when making purchases.’

The FCA said existing legislation requiring firms to reimburse consumers in cases of unauthorised payment fraud, for example when their cards are lost or stolen, would remain in place.

Feedback to the engagement paper closes on May 9 this year.

Jana Mackintosh, managing director, payments and innovation at UK Finance said: ‘We welcome today’s announcement from the FCA seeking views on how we can improve payments.

‘Having a contactless limit is important in terms of fraud prevention, but we believe overall limits and the number of times a customer needs to enter a pin should be determined by industry rather than the regulator.

‘Banks know their customers and can strike the right balance between protecting them and giving them fast and secure payment options.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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