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PSR confirms new requirements for APP fraud reimbursement


The Payment Systems Regulator (PSR) has argued that new requirements for banks and payment companies will ensure that more victims of Authorised Push Payment (APP) fraud get their money back than ever before, driving greater efforts to prevent such frauds.

Following consultation, the PSR has set out its views on how mandatory reimbursement will work in practice, clarifying what this means for customers and firms. The new requirements are expected to prompt a step-change in the culture of payments leading to improved fraud prevention and focusing firms on protecting customers more effectively. 

  • New rules in Faster Payments, the payment system across which most APP fraud currently takes place, will strengthening Pay.UK’s ability to tackle fraud  
  • All payment firms will be incentivised to take action, with sending and receiving firms splitting the costs of reimbursement 50/
  • Customers will be better protected under consistent minimum standards, with most APP fraud victims reimbursed within five business days, and additional protections for vulnerable customers  
  • Clearer guidance for the industry to follow will cover the ability to apply a claim excess and the maximum level of reimbursement. 

The Financial Services and Markets Bill currently making its way through Parliament will remove existing barriers and allow the PSR to direct firms to reimburse customers. It is expected to receive Royal Assent in 2023, after which the PSR will be able to enforce its requirements on payment firms. Further PSR actions will include:

  • Consulting on draft legal instruments (July)
  • Consulting on maximum reimbursement and claim excess levels and provide guidance on the customer standard of caution (gross negligence) (August)
  • Providing the final legal instruments to Pay.UK and issue a further consultation on the legal instrument to PSPs (October)
  • Publishing the claim excess and maximum level of reimbursement, additional guidance on the customer standard of caution, and all legal instruments (this year)
  • The new reimbursement requirement will come into force In 2024.


PS23/3: Fighting authorised push payment fraud: a new reimbursement requirement | Payment Systems Regulator (