The Payment Systems Regulator (PSR) has confirmed that, from 7 October 2026, victims of Authorised Push Payment (APP) fraud will be entitled to reimbursement up to £85,000 per transaction. This new cap applies to all payments made through the Faster Payments system and is aligned with the Bank of England’s recently set reimbursement limit for the CHAPS scheme. The measure is designed to provide robust protection for consumers affected by payment scams, with the PSR estimating that over 99% of compensation claims will fall within this maximum threshold. [Source: PSR]
The new reimbursement scheme introduces a shared cost model, requiring both sending and receiving payment service providers (PSPs) to contribute equally to the cost of reimbursing fraud victims. This approach is expected to create stronger incentives for all parties to implement effective fraud prevention measures. By aligning reimbursement limits across Faster Payments and CHAPS, the policy also aims to reduce complexity for consumers and support clarity within the sector.
| Key Facts | Details |
|---|---|
| Reimbursement Limit | Up to £85,000 per APP scam case |
| Effective Date | 7 October 2026 |
| Coverage | Over 99% of claims covered |
A final, detailed policy statement from the PSR will be published next week outlining the rationale behind the decision. The Bank of England has committed to reviewing the £85,000 CHAPS cap within twelve months to ensure it remains appropriate, which may lead to future adjustments as the payment landscape evolves.
