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Pay.UK Announces Conclusions and Recommendations following Call for Information

On 26 July, Pay.UK received a ‘change request’ from UK Finance on behalf of seven Faster Payments Service Direct Participants. This request proposed a change to the FPS Rules for the payment of a fee by FPS participants to finance a central fund to be used to reimburse victims of authorised push payment (APP) fraud in a “no-blame” situation (where neither the customer nor their payment service provider is at fault).

Pay.UK issued a Call for Information (CfI) on 27 August to seek views, insights and information from those who would be affected by this change.

We have now published our conclusion on this CfI. As the payments sector has raised doubts over the proposed model’s implementation and effectiveness, we have concluded that there is no industry consensus to finance a central fund to reimburse innocent victims of APP fraud. Pay.UK is now calling on industry and regulators to work together to find a solution that gives customers peace of mind and meets the needs of different types of payment providers.

Our press release announcing this decision can be downloaded below.

A supporting document that details our conclusions and our recommendations on what the next steps should be, can be downloaded below. Our ‘Overview of Pay.UK Decision’ document also includes a summary of our evaluation of the responses we received to the CfI, as well as our overall observations on the proposal.