Anyone shopping in a supermarket like Aldi, Asda, Tesco, Morrisons, Waitrose and Sainsbury's could see a major change in the near future if proposals are put into action. Currently if people get to the till with their 'weekly shop' and it goes over £100 they have to juggle bags, phones and wallets to put their card in the machine and enter their pin.

Under the plans, which officials hope will stimulate the economy and promote growth, a consultation period has now started. Officials at the Financial Conduct Authority (FCA) which is behind the plans want to hear from businesses and shoppers about the change - especially about potential new payment methods and how to combat fears that it could lead to increased fraud due to cards being used for bigger transactions without pin checks.

The FCA has said: "Families and businesses across the country could benefit from greater choice, flexibility and smoother purchases, under proposals being considered by the FCA. Making regulation less prescriptive would also give firms greater control and could promote innovative payment methods or fraud prevention solutions."

The plans were put forward in a letter to Sir Keir Starmer as part of a range of suggestions from the FCA to support growth. It added: "One option put forward is to allow firms, who use technology to reinforce strong fraud controls, to set their own limits as happens in the United States. Any changes would need to support good customer outcomes as required by the Consumer Duty.

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.

"We've worked fast to progress this work which is one of around 50 measures we put forward at the start of the year to help support economic growth across the UK and, in turn, improve lives." One expert said it would mean stores setting their own rules on how much could be paid in this way.

The FCA Chief Executive Nikhil Rathi explained that the plan to encourage growth would include taking 'greater risks and rigorously prioritise resources'.Some have criticised the proposals to increase the limit on contactless saying that it will be easier to commit greater fraud with stolen cards as it would be easier to buy high value items.

Jeremy Light Co-founder at digital payment company Fourdotzero previously said he believed retailers may be able to set their own top payment level: "I believe that "drawing on US experience" means allowing individual retailers to set their own contactless limits, which is fair.

"I hope so - then retailers can set limits to their own risk appetite based on their own experience, rather than being forced to accept high value unauthorised, potentially fraudulent card payments. Otherwise, raising the contactless card limit further will increase contactless fraud. It jumped 80% (according to UK Finance's 2024 fraud report) in 2022 after the limit was rasied from £45 to £100 in late 2021 and rose a further 19% in 2023.

"UK Finance plays down the significance of contactless fraud - although one third of all lost & stolen card spend (i.e. fraud ) was contactless in 2023, it was relatively low in total at £41.5 million, with the contactless fraud-to-turnover ratio below that for unauthorised card fraud overall. Any changes the FCA makes to contactless limits must keep a lid on fraud."

Melvin Haskins Managing Director at IT management company Haston International Limited said: "I am at a loss to understand why the limit is being removed. It means that if my card is stolen a thief has the ability to use it for large purchases without any proof of identity. This is madness."

The most recent contactless limit change - from £45 to £100 - took place back in October 2021 in an effort to encourage no touch point payments during the pandemic . The government also hoped that by upping the limit and allowing consumers to spend more using their preferred payment method, this would help to boost retail and economic growth post-COVID.

Following a decline in retail sales during December 2024, the Financial Conduct Authority has reportedly pitched potential methods to "tear down barriers to economic growth" to the Prime Minister - which includes changes to contactless payments. The FCA also added that raising the limit would allow firms and customers greater flexibility and help to level the playing field with digital wallets.

Emma Reynolds, Economic Secretary to the Treasury, said: "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."

Feedback to the engagement paper closes on May 9 this year. Click here to read and respond.