PSR is consulting, as promised, on a Specific Direction on FPS participants which will underpin the faster payments reimbursement rules and will require participants to follow the rules and reimburse APP scam victims in line with PSR’s policy. PSR had published a draft of the direction in July, and respondents asked for more clarity on its scope and on which PSPs it would cover. PSR has confirmed the purpose of the Direction is to ensure that all Faster Payments PSPs who provide a payment account in the UK to their payment service users, which can send or receive Faster Payments, will be covered. All transactions will be in scope except those that fall within the consumer standard of care exception, time limits, and subject to maximum levels of excess and a maximum level of reimbursement.
The Direction also sets out the requirements on reporting scam case data, and proposes an obligation on indirect providers to tell PSR of all indirect PSP customers they provide access to and that such a list be provided annually for the previous calendar year, with the first being due by 31 March 2024.
As the BoE has announced its intention to apply similar requirements to relevant CHAPS payments, PSR is considering giving a direction to direct and indirect CHAPS participants, mirroring the FPS direction so far as possible. It hopes to consult on this by the end of Q1 2024.
Consultation closes on 19 October. PSR had originally wanted the new requirements to take effect on 2 April 2024, but following feedback that some PSPs would not be ready in time, it is now proposing a live date of 7 October 2024.