On 3 October 2024, the Payment Systems Regulator (PSR) published a policy statement, PS24/7, confirming the maximum level of reimbursement under its Faster Payments Authorised Push Payment (APP) scams reimbursement requirement.
Background
The PSR announced on 26 September 2024 that it had decided to start the maximum level that PSPs will have to reimburse victims of Faster Payments APP scams at £85,000 per claim. The maximum reimbursement value had previously been set at £415,000.
The reimbursement requirement aims to incentivise all payment firms to prevent these scams from happening in the first place, and make sure consumers are protected if they do fall victim.
The policy statement
In PS24/7, the PSR explains that setting the maximum level of reimbursement at £85,000 will mean that 99.8% of all Faster Payments APP scams by volume, and 90% by value, are fully reimbursed, providing they fall in scope of the policy. It notes that it will also mitigate possible prudential risks to PSPs, which will protect customers from any potential long-term adverse impacts. The PSR considers this to strike an appropriate balance, having regard to all of its statutory objectives.
This level will be kept under review and considered as part of the PSR’s 12-month evaluation of the reimbursement policy.
Next steps
The start date for the reimbursement policy is 7 October 2024, and the PSR reminds payment service providers (PSPs) that it is crucial that they continue the work already underway to prepare and ensure they are ready to implement the requirements. The PSR also intends to continue to work with stakeholders after the policy has gone live to support ongoing effective consumer reimbursement in line with the policy.