Today, the PSR has confirmed the maximum reimbursement limit for victims of Authorised Push Payment (APP) scams starting from 7 October. Having given careful consideration to all the feedback and information received, the PSR board has decided that the maximum reimbursement limit for Faster Payments will be £85,000.
The PSR’s requirements will provide world-leading protections to people who fall victim to scams – with over 99% of APP claims covered by the reimbursement cap. It will also give firms strong financial incentives to continue to make improvements to their fraud prevention controls.
This was a carefully balanced decision – which provides significant protection to fraud victims and strikes an appropriate balance having regard to the PSR’s innovation and competition objectives and making sure that payment systems work well for everyone. A final policy statement to explain the reasoning for the decision will be published next week.
The regulator is making this short announcement today to ensure everyone is clear on its decision and to provide clarity on the limit prior to the reimbursement requirements coming into effect on 7 October, supporting their implementation, so that people benefit from the protections from that date.
The Bank of England, as the operator of CHAPS, has carefully considered the feedback made in relation to CHAPS as part of the same consultation. The Bank has decided that the maximum reimbursement for CHAPS will be £85,000. In making this decision, the Bank has given weight to the benefits to industry and consumers of having consistency of limits across the two payment systems. The Bank is committed to reviewing this limit within 12 months.