On 17 April 2024, the Payment Systems Regulator (PSR) published Consultation Paper CP24/3 on the Faster Payments System (FPS) authorised push payments (APP) scams reimbursement requirement: compliance and monitoring.


The PSR published Policy Statement PS23/3 and PS23/4 in 2023, setting the detailed parameters for the FPS APP scams reimbursement requirement. The PSR has also published three legal instruments which give effect to the policy. The reimbursement requirement policy is intended to:

  • Incentivise the payment industry to invest further in end-to-end fraud prevention by requiring every payment service provider (PSP) in-scope to meet the cost of reimbursement.
  • Increase customer protections so most victims of APP fraud are swiftly reimbursed, boosting confidence in the UK payment ecosystem.
  • Support the PSR to pursue its long-term ambition for Pay.UK to take on a broader role and actively improve the rules governing the FPS to tackle fraud in its role as the payment system operator.

The start date for the reimbursement policy is 7 October 2024, and the PSR is reminding PSPs that it is crucial that they continue the work already underway to prepare and ensure they are ready to implement the requirements.

The consultation

As the operator of the FPS, Pay.UK will be responsible for monitoring all directed PSPs’ compliance with the FPS reimbursement rules, and it has been developing its compliance monitoring regime in consultation with industry and the PSR.

In the consultation, the PSR proposes:

  • To require all PSPs in-scope of the  reimbursement requirement policy to report data and information to Pay.UK, so that it can effectively monitor and manage compliance with the FPS reimbursement rules.
  • Requirements for how this data must be provided and how it will be managed, including proposals to require PSPs to use Pay.UK’s reimbursement claim management system (RCMS) to collate, retain and provide data to Pay.UK, by requiring PSPs to comply with the FPS rule that will require its use. All PSPs using the RCMS is intended to support PSPs to effectively communicate in respect of claims.
  • A streamlined approach and phased reporting from the policy start date.
  • To place limits on what Pay.UK is permitted to do with the monitoring data and information it receives from PSPs, including in respect of disclosure.

The PSR proposes to deliver this through new requirements within the existing specific directions. It flags that it is not proposing any changes to the powers exercised, or the requirements already contained within the specific directions relating to FPS APP scam reimbursement.

Next steps

The deadline for responses to the consultation is 5pm on 28 May 2024.