Bank Wire › APP fraud reimbursement: the PSR rules
APP fraud reimbursement: the PSR rules
Since 7 October 2024, UK payment firms must reimburse many victims of authorised push payment fraud. The rules have limits and conditions, which this page sets out in outline.
What is APP fraud?
Authorised push payment (APP) fraud is when you are tricked into sending money from your account to an account controlled by a fraudster. Because you "authorised" the payment, banks once treated it as your responsibility, even though you were deceived. After campaigning and regulatory action, the PSR introduced mandatory reimbursement for payments on Faster Payments and CHAPS.
The main rules
- Start date: for payments made from 7 October 2024.
- Who is covered: individuals, microenterprises and charities, as defined in the PSR's rules.
- Which payments: UK Faster Payments and CHAPS, sent to a UK account.
- Limit: up to £85,000 per claim.
- Time limit to claim: within 13 months of the final payment to the fraudster.
- Speed: the sending firm should usually reimburse within five business days of the claim. It may "stop the clock" only for specified reasons, such as gathering information from you, the receiving firm or the police, but must close the claim by the end of the 35th business day.
- Cost sharing: the sending and receiving firms share the cost 50:50.
- Excess: a firm may apply an excess of up to £100, or none. Customers assessed as vulnerable are exempt from the excess.
Exceptions
- If the claim is fraudulent, such as a false report.
- If the customer acted with gross negligence (the "consumer standard of caution" exception), which the PSR limits to specific circumstances such as ignoring a firm's intervention, not reporting promptly or not responding to information requests. It does not apply to customers assessed as vulnerable.
- Civil disputes with a legitimate supplier, such as a disagreement about goods or services, are generally not covered and may be dealt with another way.
- Payments on other systems and international payments are out of scope, as are payments for unlawful purposes. Card payments have different protections.
How to claim
- Report the scam to your bank as soon as you discover it, by phone or app, using a number you trust.
- Give a clear account and any evidence, such as messages and receipts.
- Report it to the police through the national fraud reporting service if appropriate.
- Keep a record of dates and reference numbers.
The firm will investigate, may ask questions and will explain the outcome. A reimbursement claim does not stop you also reporting to the police.
If your claim is refused
Ask for the reasons in writing. You can complain to the firm and then take the matter free to the Financial Ombudsman Service. See wrong account steps for non-fraud mistakes.
Who regulates this?
The PSR set the requirement, and the Faster Payments and CHAPS scheme rules put it into practice. The PSR's functions may move to the FCA, so check both websites for the current position. Rules and limits may change, so always check the official sources.
Prevention still matters
Reimbursement is a safety net. Learn the patterns in bank transfer scams and use Confirmation of Payee properly.
Keeping your claim strong
Answer your bank's questions fully and honestly, including how you were contacted and what you were told. Keep any messages, screenshots and call logs. If you were warned by your bank during the payment, explain what you were told at the time and why you went ahead.
This is general information, not financial or legal advice. Rules, limits and fees differ between banks and change over time, so check with your bank and the official sources listed.
Frequently asked questions
What is the maximum reimbursement?
Up to £85,000 per claim under the PSR rules.
How long do I have to claim?
Firms can refuse claims made more than 13 months after the final payment to the fraudster.
Are card payments covered?
Not under this scheme, which covers Faster Payments and CHAPS between UK accounts. Card payments have other protections depending on the case.