How contactless payments work

A contactless payment is a way to pay by debit, credit or pre-paid cards for smaller transactions without inserting your card or using your PIN – instead you tap to pay.

Contactless payments use ‘near field communication (NFC)’ technology to transmit your payment details quickly and securely when you hold your card or phone (if you’ve stored your card in a digital wallet) against a card reader.  

If you have a smartphone, you will likely have an app where you can store card details. The main digital wallets are Apple Pay and Google Pay. This means you don’t even need to have your physical card to pay.  

When asked to pay, you’ll need to hold your card or phone against the machine for a second or two until the machine beeps. It’ll then process your payment and confirm when it goes through. You often won’t get a physical receipt.

You can usually tap for a transaction up to £100. However, this £100 limit is changing. From March 2026, banks and payment providers will be able to set their own limit, keep it at £100,scrap it altogether or ask you to set your own limit.  

Contactless limits through digital wallet providers like Apple or Google Pay may be higher, because they use added security like face ID. 

If you’ve paid using contactless more than a few times in a row, you may get asked for your PIN. So, every so often you’ll need to insert your card in the reader and enter your PIN. This is the bank’s way of checking it’s really you. 

This security check could also happen if you’ve reached the ‘cumulative limit’ so you’ve spent more than £300 over several transactions (this limit will also be changing in March 2026). 

You can use your debit or credit card to make a contactless payment if it has the contactless symbol (almost all cards do).  

You can also use wearables like a smartwatch or even a ring if it’s ‘NFC enabled’.  

Phones let you add your card to your device so you can make online purchases using mobile wallets like Apple Pay or Google Pay. 

Contactless is quick and easy to use – almost too easy. So it’s important to know you can set controls yourself if you’re worried about overspending.  

If you have a banking app, check card settings and choose the contactless payment limit (this might be called ‘contactless limit or ‘card limits’). Some banks and payment providers allow you to set your own limit up to £100 (with some banks / payment providers).

It’s easiest to manage contactless using online or mobile banking. This will allow you to check card settings. 

You can take these simple steps to limit your spending: 

• Disable contactless by using your banking app or by contacting your bank or building society direct. You can do this temporarily and then re-enable contactless payments. Some banks call this ‘freezing’ – you can still use your card, just not for contactless. 
• Enable alerts in the app – so when a contactless payment is made, you get a notification on your phone. This can help you keep track of your spending. 

The current blanket £100 limit is changing from March 2026 - payment providers will set their own limit, keep it at £100, scrap it altogether or ask you to set it. So it’s good to change your limit to suit you and your budget. See our blog for tips on managing your contactless spending.

A contactless payment saves you time, but is also a secure way to pay – your actual card details aren’t shared during the transaction.  And if anything does go wrong, you’re protected. 

If your card is stolen, a thief can spend on it using contactless payment. But once you’ve reported it to the bank or card provider, you’re not liable for any losses and the payment provider has to refund you. 

You might have to pay the first £50 spent before you reported the card lost – but this is the maximum amount you’ll be liable for. You won’t get money back if you’ve not taken ‘reasonable care’ to keep your card secure (eg you’ve made the mistake of writing the PIN number on it).

The most important thing you need to do is act quickly. 

• Cancel or block the missing card in your banking app. 
• Report a lost or stolen card to your bank by calling them. 
• Check for unauthorised transactions and dispute them – let your bank or payment provider know.

You can take steps to protect against fraud: 

• Don’t hand over your card – always keep it in sight when you are paying. 
• Check your statement regularly to spot any unusual transactions. 
• Enable notifications in your banking app so you can spot any fraudulent transactions. 
• Add location-based security features in your banking app – so you have to confirm your identity when making a payment from an unusual location.  

You could use digital wallets rather than contactless cards as they need biometric data (such as your facial ID). This means if your phone is lost or stolen your wallet is inaccessible without your face or fingerprint .

As with any financial or personal information, be cautious and keep your details safe. To protect yourself, see our guide Am I being scammed? How to tell if you’ve been targeted.

You can use your card abroad wherever you see the contactless symbol displayed. Most banks and credit card providers charge fees for using your card when you are out of the UK so check before you travel.  

Find out more about spending abroad in our guide to prepaid cards.