APP (Authorised Push Payment) Reimbursement Policy

Financial protection is an important right, one we should all have, and the implementation of the Authorised Push Payment (APP) scam reimbursement policy aims to protect victims who have suffered financial loss and once implemented, can expect their bank to act in a consistent manner.

We have been directed by the Payment System Regulator (PSR) to implement the APP reimbursement policy which addresses APP fraud within the Faster Payment System (FPS). In-scope Payment Service Providers (PSPs) will be required to reimburse victims within 5 working, and receiving PSPs will be required to share the cost of the fraud loss with the sending PSP.

The key benefit of the policy is improved experience and protection for end users in cases where they are victims of fraud as the majority will be reimbursed within 5 days, and the increased focus on the implementation of best-in-class fraud detection and prevention solutions across the industry to ensure fraud losses are kept to a minimum for both sending and receiving PSPs.

Pay.UK has been directed by the PSR to implement the policy. We are required to:

Collect data from in-scope PSPs and monitor the consistent compliance of all in-scope PSPs with the APP scam reimbursement rules

Act appropriately on breaches of the reimbursement rules by all in-scope PSPs in line with the agreed compliance monitoring process

Report data to the PSR to allow it, as the public authority, to enforce non-complaint in-scope PSPs

We have recently concluded our  RfP process and are working with our supplier to  deliver a claims management tool to support the implementation of the policy. This solution will facilitate easy communication between sending and receiving banks dealing with the APP Reimbursement claims, enabling them to fulfil their legal obligations.

We are in the process of finalising the Reimbursement Rules, for inclusion in the Faster Payment System (FPS) rules, which will be shared with the PSR for review ahead of the final version being published in June. The latest version of the FPS APP Reimbursement Scheme Rules – Schedule 4; and its draft v0.9 are available to the industry. If you are a PSP that will be affected by the PSR’s policy and would like access to more information about our plans and engagement, please get in touch at appreimbursement@wearepay.uk. We have created a SharePoint site where all materials are uploaded and would be happy to provide you with access.

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