On 8 June 2023, the Payment Systems Regulator (PSR) published a speech by Chris Hemsley, on fighting authorised push payment (APP) fraud: a new reimbursement requirement. The speech details the PSR’s final position on tackling APP scams.
Mr Helmsley sets out the following decisions that the PSR has taken:
- There will be new rules in Faster Payments that introduce consistent minimum standards to reimburse victims of APP fraud – bringing all payment firms into arrangements, not just those willing to participate in the voluntary code.
- Incentives are being introduced on the receiving end of transactions for the first time, by sharing reimbursement costs 50:50 between the sending and receiving payment firms.
- Improvements are being made as to how customers should be protected by simplifying the rules; introducing a clear deadline; and offering additional protections for the vulnerable.
- Clearer rules for industry are being set out, including the ability to apply a claim excess; a maximum threshold for claims under these rules; and introducing a time limit to claim.
Mr Hemsley goes on to highlight that these requirements will come into force in 2024 and after the Financial Services and Markets Bill receives Royal Assent. Furthermore, in July, the PSR will consult on a specific start date, along with the draft legal instruments. It expects this consultation to happen in Q3 2023 with a view to implementing the requirements in 2024.
Mr Hemsley further notes that, these requirements are not the end point, the rules will need to adapt. Over the coming months, the PSR will engage with relevant stakeholders, including industry, government, regulators, and consumer organisations to consider the policy options and the channels available to the PSR.
