How to set your own spending limits, even if contactless becomes limitless

Contactless payments are set to change again, and this time, the limit could disappear altogether.

Under new proposals from the Financial Conduct Authority (FCA), the current £100 contactless card limit could be raised or even removed. That means you could soon be able to tap your card to pay for expensive purchases without needing to enter your PIN.

Smartphone wallets like Apple Pay and Google Pay already allow unlimited spending thanks to added security like face ID or fingerprint scans, so the change would bring physical cards in line with that.

The FCA is accepting feedback on the idea until 15 October, and, if it’s approved, the changes could take effect early next year.

Why is the contactless limit being reviewed?

The FCA’s move follows a wider push by the government to remove barriers to economic growth.

Since its introduction in 2007, when the limit was just £10, contactless payments have become a normal part of everyday life.

Over time, the limit has increased, to £30 in 2015, £45 in 2020, and, most recently, to £100 in 2021.

But every increase in the limit has also raised concerns about fraud and theft. The FCA has said that any new changes would still include protections, such as only allowing higher-value contactless transactions on low-risk purchases.

Why setting your own limit still matters

Even if banks lift contactless limits, there’s one limit that really counts - your own.

It’s now easier than ever to spend without thinking.

A few quick taps here and there can easily add up to more than you expected by the end of the week. That’s why it’s important to create your own personal spending limits, and stick to them.

Here’s how to take control of your money in a contactless world.

Know what you’ve got

Start by looking at how much money you actually have coming in each month, your take-home pay after tax. This is your total pot for everything, including bills, savings and day-to-day spending.

If you're not sure of the exact number, check your most recent payslip or banking app. It’s hard to set realistic limits without knowing what you’re working with.

Track where your money goes

Take a look at your recent spending habits. You can do this using your bank's app, your card statements, or a budgeting app like Emma or YNAB.

Make a note of how much you're spending on things like:

• takeaways
• food
• subscriptions
• shopping and clothes
• nights out and entertainment

You might be surprised by how much goes on small, frequent purchases like coffee, snacks or online impulse buys.

Decide what to cut back on

Once you have a clear picture of your spending, think about what things you could limit. This doesn’t mean cutting out all the fun stuff, it just means setting healthy boundaries.

Common areas to limit include things like takeaways, entertainment or online shopping. These are easy to overspend on because they’re often unplanned.

Choose limits that feel realistic, not overly strict. It’s better to aim for something achievable and stick to it than to go too hard and give up completely.

Smart tips to stick to your limits

Here are a few simple strategies that make it easier to stay within your spending limits, especially if contactless becomes unlimited:

Use cash for social events or nights out

Withdraw a set amount before you go out and leave your cards at home. When the cash is gone, the spending stops.

Try a prepaid card

Top it up with your weekly spending money. It gives you the freedom to spend, without the risk of going over budget.

Create separate bank accounts for different things

Keep your bills, savings and day-to-day spending in separate accounts. This helps you avoid dipping into money that’s meant for something else.

Set spending alerts in your bank app

Most banks let you set up notifications or even daily and weekly limits. These gentle reminders can help keep your spending in check.

Use the envelope method

The envelope method is old-school but effective. Take out cash for different spending categories, like food and coffee, and keep them in separate envelopes.

By setting personal limits, tracking your habits and using smart tools, you can stay in control, no matter how easy it gets to spend.

Use our free budget calculator to help take control of your money. Remember, the more accurate the figures you enter, the better the results.