The UK Payment Systems Regulator (PSR) has confirmed that mandatory reimbursement rules for authorised push payment (APP) scams will come into force on 7 October 2024. These new regulations require banks and payment firms to compensate victims of APP scams more quickly and to implement enhanced fraud controls. Alongside this announcement, the PSR has launched a two-week consultation regarding a proposed reduction in the maximum reimbursement cap for individual claims, which would be aligned to the Financial Services Compensation Scheme (FSCS) limit of £85,000.
Key Details
- The new reimbursement rules take effect from 7 October 2024 (Official announcement).
- The current reimbursement cap stands at £415,000 per claim; the PSR proposes lowering this to £85,000.
- In 2023, there were 18 cases involving losses greater than £415,000 and 411 cases exceeding £85,000.
- Under the proposed cap, over 99% of claims by volume would remain fully covered.
The PSR’s intention is to maintain robust consumer protection while ensuring continued incentives for banks and payment providers to invest in anti-fraud systems. David Geale, Managing Director at the PSR, stated: “We listened to concerns about the reimbursement limit and committed to collecting more evidence to inform our approach. As a result, we are now consulting on a limit that still covers the vast majority of authorised push payment scams and strikes the right balance. Under our proposals, consumers in the UK will still receive world-leading protection, payment providers will still be heavily incentivised to improve anti-fraud protections and we maintain effective market competition and innovation.”
| Previous Cap | Proposed Cap | Claims Covered (%) |
|---|---|---|
| £415,000 | £85,000 | >99% |
With the rules coming into effect, UK casino players and other consumers can expect faster reimbursement processes if they fall victim to APP scams. For those using digital payment methods or e-wallets, it is important to stay informed about reimbursement rights and security developments.
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Further details and the full consultation document are available via the Payment Systems Regulator website.
