PS24/7 Faster Payments APP scams reimbursement requirement: Confirming the maximum level of reimbursement

In 2023, we published policy statements (PS23/3 Fighting authorised push payment fraud: a new reimbursement requirement and PS23/4 Fighting authorised push payment scams: final decision) setting out the details of our Faster Payments APP scams reimbursement requirement.

This requirement aims to incentivise all payment firms to prevent these scams from happening in the first place, and make sure consumers are protected if they do fall victim.

The start date for the reimbursement policy is 7 October 2024. It is crucial that payment service providers (PSPs) continue the work already underway to prepare and ensure they are ready to implement the requirements. 

What does this document contain?

This is our full policy statement on our reimbursement requirement, following our recent announcement confirming our decision to reduce the maximum level that PSPs will have to reimburse victims of Faster Payments APP scams to £85,000 per claim, from 7 October 2024. 

This level will mean 99.8% of all Faster Payments APP scams by volume, and 90% by value, are fully reimbursed, providing they fall in scope of the policy. It will also mitigate possible prudential risks to PSPs, thereby protecting their customers from any potential long-term adverse impacts. We consider this to strike an appropriate balance having regard to all of the PSR’s statutory objectives.

We will keep this level under review and consider it as part of our 12-month evaluation of the reimbursement policy. 

The Bank of England, as the operator of CHAPS, has also decided to set the maximum level for CHAPS APP scams to £85,000 per claim. This reflects careful consideration of the feedback received including the benefits to industry and consumers of having consistent limits as well as the impact on consumers.

Who should read these documents?

This document is relevant to the payments industry, consumer groups, payment service providers, and prospective qualifying customers who use Authorised Push Payments to send money and will be within scope of the policy, once implemented.

We have also published an accompanying cost benefit analysis which can be found lower on this page as a supplementary file.