PSR published PS23/3 and PS23/4 setting the APP reimbursement requirement parameters

The Payment Systems Regulator (PSR) published two policy statements in 2023, PS23/3 and PS23/4, setting the detailed parameters for the Faster Payments Scheme (FPS) authorised push payment (APP) scams reimbursement requirement¹. The regulator also published three legal instruments giving effect to the policy¹. The start date for the reimbursement policy is 7 October 2024¹.

PS23/3 is titled "Fighting authorised push payment fraud: a new reimbursement requirement" and PS23/4 is titled "Fighting authorised push payment scams: final decision"¹. Together they set the parameters for how APP reimbursement works across the Faster Payments system.

As the operator of Faster Payments, Pay.UK will be responsible for monitoring all directed payment service providers' (PSPs) compliance with the FPS reimbursement rules¹. A later consultation, CP24/3, set out proposals for all PSPs in scope of the reimbursement requirement to report data and information to Pay.UK so it can monitor and manage compliance¹. That consultation closed on 28 May 2024¹.

The PSR said it was proposing a phased approach to reporting from the policy start date, and consulting on limits to what Pay.UK may do with the monitoring data it receives, including on disclosure¹. It said it would deliver this through new requirements within existing specific directions, and was not proposing changes to the powers exercised or to requirements already contained in those directions¹.

Why it matters for households

The policy statements set the parameters for a reimbursement requirement that applies to APP scams sent through Faster Payments, the system used for most UK bank transfers. From 7 October 2024, the rules place obligations on directed PSPs in respect of claims, and Pay.UK takes on monitoring of compliance¹. The PSR's later proposals cover how firms report data to Pay.UK, including through Pay.UK's reimbursement claim management system (RCMS), which PSPs would be required to use under a Faster Payments Scheme rule¹. The regulator said all PSPs using the RCMS would support PSPs to communicate effectively about claims¹. The maximum refund and the process for claiming a refund follow from these parameters. How the requirement interacts with FSCS protection is a separate question.

What happens next

The reimbursement policy starts on 7 October 2024¹. The PSR said it was proposing phased reporting from that date, with PSPs required to provide data and information to Pay.UK under the arrangements set out in CP24/3¹. The PSR has published its response to that consultation¹.