On 11 October 2021, the Payment Systems Regulator (PSR) published Policy Statement 21/2: Consumer protection in interbank payments – response to CP21/4 (PS21/2).
In February 2021, the PSR published a call for views on consumer protection in interbank payments (Consultation Paper 21/4: Consumer protection in interbank payments (CP21/4)). In CP21/4 the PSR set out its vision for consumer protection and why it thinks more protection is needed for retail purchases made with Faster Payments. The PSR wanted to engage with industry, consumers and businesses, to assess the best way for it to support the development of effective protection measures for Faster Payments.
In PS21/2 the PSR summarises the responses to CP21/4 and sets out plans to ensure that Faster Payments, and the service providers that use it, continue to innovate in ways that work well for consumers and businesses.
In summary, the PSR’s position is as follows:
- It expects industry to prioritise improved coordination between Faster Payment participants, to reduce the immediate risk of payment fraud.
- It wants to see industry continue to tell customers about the protections they have.
- It expects all Faster Payments participants to identify and share payment risk levels with other participants and to act responsibly to minimise customer harm.
- It will continue to support the Open Banking Implementation Entity, Pay.UK and Faster Payments participants in improving prevention and compensation measures.
- Although it does not suggest intervening in the market today to introduce additional purchase protection, it does not rule out the possibility of having to do so in the future.