Posted by Sophie Lessar, Suman Khurana and Marta Chodorowska on 28 May 2024
Tagged to FCA, Payments, PSPs, PSR


UK Payment Service Providers (PSPs) must reimburse victims (in-scope customers) of APP fraud, save for limited exceptions. The reimbursement requirement is due to come into force on 7 October 2024.

What is the impact?

  • New Reimbursement Requirement: The Payment Systems Regulator (PSR) has introduced a new policy for reimbursing victims of Authorised Push Payment (APP) fraud, with a maximum claim limit of GBP415 thousand.
  • Consumer Protections: The policy aims to significantly increase fraud prevention and ensure as much money as possible which has been lost to APP fraud is returned to victims.
  • Responsibilities and Exceptions: Payment firms can charge a claim excess up to GBP100, which is not applicable to vulnerable consumers. The PSR has recognised that consumers need to continue to be vigilant and careful when making payments and set out circumstances under which the banks may reasonably consider a consumer was not sufficiently careful. Having said that, banks must prove gross negligence to deny a claim, which the PSR deems as a very high bar to satisfy and rely on this exception.
  • Implementation Timeline: Payment firms must comply with these obligations by 7 October 2024, with the PSR monitoring the impact of high-value APP scams in the interim.

Click here to read the full article. 

The authors

Suman Khurana
Suman Khurana
Marta Chodorowska
Marta Chodorowska

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