PSR has confirmed new rules following its proposals to bring in measures to clarify how mandatory reimbursement for APP scams will work in practice. It says the requirements will prompt a “step change” in the culture of payments. The new rules:
- will require payment firms to reimburse all in-scope customers who fall victim to APP fraud in almost all cases
- will strengthen Pay.UK’s ability to tackle fraud within Faster Payments;
- apply the requirement to all PSPs within the scope of the policy, which will include smaller payment firms;
- will mean that sending and receiving firms will split the costs of reimbursement 50:50;
- set minimum standards that will mean most APP fraud victims will be reimbursed within 5 business days;
- will give extra protection to vulnerable customers; and
- will set clearer guidance for industry, including on paying a claim excess and maximum level of reimbursement, with a further PSR consultation on these due later this year.
PSR notes that it expects the FSM Bill to receive Royal Assent in 2023, which will give PSR the necessary powers to enforce the requirements.
PSR now plans a serious of consultations on legal instruments to put reimbursement requirements in place, the maximum level of reimbursement and claim excess and give additional guidance on the customer “standard of caution”, confirm and consult on the powers of Pay.UK and the legal requirements on PSPs. By the end of the year it will publish the claim excess and maximum level of reimbursement, guidance on the customer standard of caution (gross negligence) and it will publish all legal instruments – and then the new requirement will come into force in 2024.