Financial Conduct Authority proposes increase in UK contactless spending limit

The UK’s Financial Conduct Authority (FCA) is proposing to increase the limit for single contactless payments in the country from £45 (US$62) to £100 (US$137) and the limit for cumulative contactless transactions from £130 (US$179) to £200 (US$274), according to NFC World.

It is also proposing to exempt consumers from strong customer authentication (SCA) if they access their account information through an account information service provider and to facilitate third-party provider access to retail and SME customers’ accounts by mandating the use of dedicated interfaces by account servicing payment service providers.

The proposals are among those published in a new FCA consultation document concerning its regulatory technical standards (RTS) for SCA and common and secure methods of communication in the payments and e-money sectors.

“We are proposing changes to the SCA‑RTS to support competition and innovation in the payments and e‑money sector,” the FCA says. “The proposals include:

. Adding a new exemption from SCA for when customers access their account information though an account information service provider (AISPs)

. Mandating the use of dedicated interfaces (such as APIs) by account servicing payment service providers (ASPSPs) to facilitate third‑party provider (TPP) access to retail and SME customers’ payment accounts

. Changing requirements for publishing interface technical specifications, availability of testing facilities and fallback mechanisms by account providers

. Treating ASPSPs with deemed authorisation under TPR as exempt from the requirement to set up a fallback interface, where the ASPSP has an exemption from its home state competent authority

. Increasing the single and cumulative transaction thresholds for contactless payments from £45 up to £100 (or potentially a maximum of £120) and from £130 to £200 respectively.”

Consultation on the proposed increase in contactless spending limits will close on 24 February 2021 and on the remaining proposals on 30 April 2021.

The full consultation document can be downloaded here.