Fewer than half of banks and building societies examined by a star ratings website currently permit customers to set their own contactless card limit. Defaqto conducted the research ahead of rule changes coming into force on March 19, which will allow firms to set higher contactless card limits beyond the existing ceiling of £100 per transaction, should they wish to.

Financial institutions are also being urged to let customers set their own limit, or switch off contactless entirely, as numerous high street banks already do. Defaqto’s analysis of both high street and online-only banks’ apps uncovered considerable variation in the money management tools that account providers currently make available to customers.

The research revealed that only 13 of the 31 (42%) banks and building societies assessed allow customers to set their own contactless card limit, whilst 21 (68%) did permit users to freeze contactless payments.

Katie Brain, banking expert at Defaqto, said: “With the contactless cap being removed, choosing a bank or building society with the right in-app controls could make a real difference to how easily people manage their money. Features like setting your own contactless limit or freezing payments give customers a practical way to put the brakes on spending if they need to.”

The contactless payment rule changes are being implemented by the Financial Conduct Authority (FCA), with existing safeguards remaining firmly in place, ensuring consumers must be reimbursed in cases of unauthorised fraud, such as when a card is lost or stolen. Banking and finance industry body UK Finance stated in December that whilst it does not anticipate any immediate alteration to the £100 contactless limit, “any changes made in the future will be done carefully and ensure strong security and fraud controls remain in place”.

The FCA has also previously indicated that, based on industry feedback, it expected most firms would continue to maintain the £100 limit for the foreseeable future. The purpose of the changes is to enable firms to respond more effectively to evolving consumer demands, inflation and emerging technology. Defaqto conducted its analysis in February.

Defaqto’s suggestions for maintaining control of your payments

Check upcoming payments: Twelve of the available apps looked at by Defaqto let people see upcoming direct debits and standing orders up to a chosen date, helping them understand how much money they will have left.

Categorise spending: Many apps sort spending into categories, and some let people create their own. This makes it easier to spot where money is going and where spending could be cut back.

Consider establishing a personal contactless threshold: If this feature is available, it can serve as a spending checkpoint, necessitating a PIN for larger transactions and promoting more deliberate purchasing decisions.

Activate notifications: Balance and transaction notifications can help keep individuals informed of funds entering and leaving their account, potentially helping to avoid the danger of overspending.

Consider restricting certain categories of expenditure: Some providers enable customers to block particular transactions, such as gambling payments, through the app, by telephone or at a branch.