Consultation CP23/6 on APP fraud excess and maximum reimbursement level closes

The Payment Systems Regulator (PSR) consultation CP23/6 on the excess and maximum reimbursement level for Faster Payments and CHAPS closed on 12 September 2023, and the regulator has published its response¹. The consultation set out options for the excess and maximum level of reimbursement, and for how a maximum level would apply to vulnerable customers¹.

The PSR said the consultation followed its June 2023 policy statement setting out a new authorised push payment reimbursement requirement¹. The regulator said that policy statement "sets out a path to reducing the impact of this type of fraud, by making sure more victims of fraud get their money back, but also by prompting a step change in fraud prevention"¹.

The PSR said the document was relevant to the payments industry, consumer groups, payment service providers, and prospective qualifying customers who use authorised push payments to send money and who would be within scope of the policy once implemented¹. The regulator also published a separate consultation on the Customer Standard of Caution, covering gross negligence, and guidance on that standard for payment service providers¹.

The consultation page does not state the proposed values of the excess or the maximum reimbursement level, and no figures for either are given in the material published alongside the closure¹. The PSR's response is published as a legal direction and decision, the APP scams reimbursement specific requirement (SR1) on Pay.UK¹.

Why it matters for households

The consultation concerns two numbers that shape how much a victim of authorised push payment fraud recovers: the excess a claimant bears before reimbursement, and the maximum reimbursement level that caps a claim¹. The PSR's June 2023 policy statement set out the reimbursement requirement itself, and this consultation dealt with the excess and cap that sit alongside it, including how a cap would apply to vulnerable customers¹. The outcome therefore affects people who send money by Faster Payments and CHAPS and who fall within scope of the policy once it is implemented, as well as the payment service providers that would handle claims¹. The consultation page does not set out the amounts, so the effect on any individual claim cannot be stated from it¹.

What happens next

The consultation closed on 12 September 2023 and the PSR has published its response¹. The response takes the form of a specific requirement direction on Pay.UK¹. The PSR has not, on the consultation page, set out a date for the reimbursement requirement to take effect¹. The separate consultation on the Customer Standard of Caution and the accompanying guidance for payment service providers were also published¹. The Payment Systems Regulator oversees this work, and the consultation process is how the rules are made.