The Payment Systems Regulator (PSR) consultation CP23/7 on the consumer standard of caution closed on 12 September 20231. The regulator said it had published its response to the consultation1. The consultation covered the consumer standard of caution, commonly described as gross negligence, and draft guidance for payment service providers (PSPs)1.
The PSR said the document explained the policy approach it proposed to take to the consumer standard of caution and the draft guidance it intended to produce alongside it1. The consultation followed the June 2023 policy statement setting out the PSR's new authorised push payment (APP) fraud reimbursement requirement1.
"It 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."
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 would be within scope of the policy once implemented1. Separately, the PSR published a consultation on the value of the excess and maximum reimbursement level for Faster Payments, and said it was asking questions on a maximum reimbursement level for CHAPS on behalf of the Bank of England1.
Why it matters for households
The consumer standard of caution determines when a bank or payment firm can refuse to reimburse a victim of APP fraud on the grounds that the customer failed to take sufficient care. The consultation set out the PSR's proposed approach to that standard and draft guidance for PSPs on how to apply it1. The outcome therefore affects people who send money by Authorised Push Payment and fall within the scope of the reimbursement policy once it is implemented1. The PSR has not reported in this document the final wording of the standard or the date it takes effect.
What happens next
The consultation closed on 12 September 2023 and the PSR said it had published its response1. The PSR has not reported in this document when the final guidance for PSPs will apply or when the reimbursement requirement takes effect.
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