PS24/5 CHAPS APP scams reimbursement requirement

In May, we consulted on our proposal to direct banks and other payment firms participating in CHAPS to reimburse their customers who have been victims of authorised push payment (APP) scams. Our proposed direction designed to underpin the Bank of England’s new CHAPS reimbursement rules.  

We are now confirming the approach we are taking to expand reimbursement protections to consumers of CHAPS. The proposed rules, the approach we consulted on and SD21 are aligned with the approach we are taking for Faster Payments. 

This policy statement confirms our approach, provides a summary of responses to our consultation and our views on points raised by respondents.

What this document contains

This policy statement sets out the final details of the CHAPS reimbursement requirement policy, and confirms:

• the policy start date of 7 October 2024, aligned with the date that the Bank’s CHAPS reimbursement rules will come into effect, and the Faster Payments reimbursement policy start date. This approach will ensure delivery of consistent protections for consumers of CHAPS to be delivered as soon as possible, and reduce the risk of fraud migrating from Faster Payments to CHAPS.
• all in-scope PSPs must register in line with the requirements set out in the CHAPS reimbursement rules as soon as practicable and no later than 7 October 2024, by providing the information set out in the CHAPS reimbursement rules. This requirement only applies to PSPs who are not already required to register (or who are not already registered) with Pay.UK as required by SD20 which applies to directed PSPs in relation to Faster Payments. This is to ensure that in-scope PSPs are only required to register once.
• the compliance and monitoring metrics PSPs will need to report to the Bank on a monthly basis. This information may also be shared with the PSR so that we can monitor compliance with SD21. These are aligned with the confirmed metrics for Faster Payments – with a key difference that PSPs are not required to submit nil returns to the Bank, where they have not received any APP scam claims in the relevant reporting period. 

Who should read this document: 

This document is relevant to the payments industry, consumer groups, payment service providers, and prospective qualifying customers who use CHAPS to send money.