Payment Delay Regulations to take effect on 30 October

Treasury has made the Payment Services (Amendment) Regulations 2024. They will take effect on 30 October and amend regulation 86 of the PSRs that requires PSPs to execute payment transactions within set timeframes.

The Regulations allow the PSP to delay execution for up to 3 days after the end of the first day following the payment order, provided they have, by the end of that first day, formed reasonable grounds to suspect the order had been made subject to fraud or dishonesty of a third party. The delay should be no longer than necessary, and only to enable the PSP to decide whether to execute the order.

The Regulations also explain how the payer should be told of the delay and provide that the PSP will be liable to the payment service user for any charges or interest the payment service user has to pay as a result of the delay, regardless of whether the payment order is in the end executed.