On 8 May 2024, the Payment Systems Regulator (PSR) published a Consultation Paper, CP24/8, on the CHAPS authorised push payment (APP) scam reimbursement requirement. The proposals are intended to support the Bank of England’s (BoE) efforts to enhance fraud prevention in CHAPS.

In CP24/8, the PSR is proposing to direct banks and other payment firms participating in CHAPS to reimburse their customers who have been victims of APP scams. The direction will underpin the BoE’s new CHAPS reimbursement rules. The proposed direction will place a requirement on CHAPS payment service providers (PSPs) to follow these rules and reimburse victims of APP scams in accordance with the BoE’s CHAPS reimbursement requirement policy. This mirrors the approach the PSR has taken to implementing its policy requiring payment firms to reimburse APP scam victims who lose money through transactions over the Faster Payment System (FPS). These FPS protections come into effect from 7 October 2024.

Next steps

The consultation is open until 31 May 2024. After it has considered responses to CP24/8, the PSR plans to finalise and publish the specific direction in September 2024, with a go-live date of 7 October 2024 (the same as the go-live date for the FPS reimbursement policy, so APP scam victims will get the same protection across both payment systems).