PS21/2: Amendments to single and cumulative transaction thresholds for contactless payments

Open consultation
28/01/2021
Consultation closed (for questions 5 and 6 relating to contactless payments)
24/02/2021
24/02/2021
Consultation closes for all other questions
30/04/2021

This PS summarises the responses we received on our proposed changes relating to the contactless card payments limits at Q5 and Q6 in CP21/3.

Read PS21/2

Read CP21/3

What we are changing

Our amendments to the regulatory single and cumulative transaction thresholds will enable the industry to increase the industry thresholds. We encourage the industry to use these changes to support consumers and merchants during the recovery from the coronavirus (Covid-19) pandemic.

This PS also confirms that Article 11 of the SCA-RTS will be amended so that strong customer authentication is not required for single contactless transactions up to the value of £100 per transaction. In addition, the amendments to Article 11 of the SCA-RTS confirm the cumulative transaction threshold increases from £130 to £300.

Who this applies to

Payment service providers (PSPs), as well as trade bodies representing them, should read this PS. Our proposals affect credit institutions providing payment services and/or issuing e-money, as well as payment institutions (PIs) and e-money institutions (EMIs). It also applies to firms subject to the temporary permission regime (TPR) and the financial services contracts regime (FSCR) set out in Schedule 3 of the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (Exit SI). It also applies to Gibraltar firms providing payment services in the UK. This PS will also be of interest to:

  • retailers
  • consumers and micro enterprises
  • consumer groups
  • credit unions

Background

In our 2020/2021 Business Plan, we identified the payments sector as a priority for the next 3 years. Our work intends to make sure: consumers transact safely with payment firms; payment firms meet their regulatory obligations while competing on quality and value; and consumers and SMEs have access to a variety of payment services.

On 28 January 2021, in CP21/3, we consulted on proposals to amend the technical standards on strong customer authentication and common and secure methods of communication (SCA-RTS), FCA Approach Document (AD) and Perimeter Guidance Manual (PERG). This policy statement (PS) focuses on Q5 and Q6 in CP21/3 on proposed changes to the single transaction limit and cumulative limits for contactless payments under Article 11 SCA-RTS.

Next Steps

Our amendments to the regulatory single and cumulative transaction thresholds will enable the industry to increase the industry thresholds. We encourage the industry to use these changes to support consumers and merchants during the recovery from the coronavirus pandemic.