New contactless payment rule coming into effect next month will affect all cards

It comes into effect in weeks.

From March 19, financial firms will be allowed to raise the contactless limit beyond the current £100 per-transaction cap, if they choose to.

Out of 31 high street and digital banks analysed, only 13 (42%) let users set their own contactless limit through their app.

A slightly higher 21 (68%) allow customers to freeze contactless payments entirely which is a feature consumer groups have been urging all banks to adopt.

Katie Brain, a banking expert at Defaqto, said customers should pay close attention to what their bank offers: “Choosing a bank with the right in-app controls could make a real difference. Setting your own contactless limit or freezing payments gives people a practical way to put the brakes on spending if they need to.”

The new rules are being rolled out by the Financial Conduct Authority (FCA), which says all current fraud protections will remain in place, including full refunds for unauthorised transactions if a card is lost or stolen.

And despite the regulatory green light to raise limits, industry body UK Finance has played down expectations of any big moves soon.

In December it said it does not expect an immediate increase, but any future changes would be handled 'carefully' with security front of mind.