PSR publishes PS24/5 CHAPS APP scams reimbursement requirement

The Payment Systems Regulator (PSR) published Specific Direction 21 (SD21), the CHAPS APP scams reimbursement requirement, on 6 September 2024¹. The direction sets out the reimbursement requirement for authorised push payment (APP) scams made over CHAPS and directs in-scope payment service providers (PSPs) to comply with the reimbursement rules¹.

SD21 applies to all PSPs participating in CHAPS that provide relevant accounts¹. Relevant accounts are defined as those provided to a service user, held in the UK, that can send or receive payments using CHAPS. Accounts provided by credit unions, municipal banks, financial market infrastructures and national savings banks are excluded¹. The PSR states there are no exemptions from the obligation based on business or firm type¹.

The publication is dated 6 September 2024 and is listed by the PSR as PS24/5¹. A companion document, described as a comparite version including tracked changes following the regulator's consultation, is also published alongside the direction¹.

Why it matters for households

APP scams happen when someone is tricked into sending money to a fraudster. Reimbursement rules for these scams already apply to payments made over the Faster Payments system, and SD21 extends the requirement to payments sent over CHAPS¹. CHAPS is typically used for high-value transfers, so the direction brings those payments within the same reimbursement framework¹.

The scope is defined by the account rather than the customer. A household or business using a UK account that can send or receive CHAPS payments, and whose provider participates in CHAPS, falls within the direction unless the account is provided by a credit union, municipal bank, financial market infrastructure or national savings bank¹. The PSR states there are no exemptions based on business or firm type¹.

The direction does not itself set out the reimbursement amounts, time limits or the split of costs between sending and receiving firms. Those details are not reported in the material published with SD21¹. The PSR's separate policy statement on the CHAPS reimbursement requirement, PS24/5, is listed as a related publication¹.

What happens next

The direction is dated 6 September 2024¹. No further implementation dates, compliance deadlines or transitional arrangements are reported in the published direction¹. The PSR's related policy statement, PS24/5, is available as a separate publication¹.