Reducing APP fraud and the resulting consumer harm is a strategic priority for the Payment Systems Regulator (PSR) and new rules will come into force next month.

The PSR has consulted about reducing the maximum reimbursement level for the Faster Payments authorised push payment (APP) fraud reimbursement requirement, which comes into force on 7 October 2024. The new scheme aims to:

• provide greater protections to consumers using Faster Payments, with the aim of driving increased trust and confidence;
• make sure payment service providers (PSPs) have the right incentives in place to drive 
  fraud out of their systems; and
• support growth and innovation in the UK payments industry through increasing trust 
  and confidence.

The PSR proposed that the initial maximum reimbursement level is set at the Financial Services Compensation Scheme (FSCS) reimbursement limit.  This is currently £85,000 for each Faster Payments APP scam claim. This is a change from the requirement it set out in its policy statement back in December, when it stated that PSPs should reimburse customers that fall victim to a Faster Payments APP scam up to a claim value of £415,000.

On 25 September 2024, the PSR confirmed that it had decided that the maximum reimbursement limit for Faster Payments will be £85,000.  The Bank of England, as the operator of CHAPS, decided that the maximum reimbursement for CHAPS will be £85,000. In making this decision, the Bank has given weight to the benefits to industry and consumers of having consistency of limits across the two payment systems. The Bank is committed to reviewing this limit within 12 months.