Authorised push payment, or APP fraud is to be tackled by new rules being introduced by the UK Payment Systems Regulator, PSR, in 2024.

The issue, which among other cases came to a head last summer involving international payments handled by Barclays, which saw some £700,000 sent via APP fraud to the United Arab Emirates, and which went all the way to the UK Supreme Court will see a new reimbursement requirement come into force on 7 October 2024; will see an upper claim limit matching the UK's Financial Ombudsman Service, FOS, upper limit of £415,000, and will impose a claim excess of no more than £100. It will also outline a standard consumer caution.

The PSR has also outlined the instruments by which the changes will come into force. These consist of:

  • Specific Requirement 1 imposed on Pay.UK.
  • Specific Direction 19 to Pay.UK.
  • Specific Direction 20 to directed PSPs. This contains the reimbursement requirement and directs in scope PSPs to comply with the reimbursement rules.

In a statement, PSR says: "Now that we have published the legal instruments, set the start date and finalised the outstanding policy issues, we expect industry's preparations for the reimbursement requirement to gather momentum. We will continue to monitor and support Pay.UK's and PSPs' progress towards implementation."

"We will continue to engage directly with PSPs and trade associations to understand any relevant challenges. We will set up a process to address their implementation and policy questions to provide the clarity industry needs to adequately prepare for the start date in October 2024."

Chris Hemsley, the PSR's managing director, added: "The action we're taking significantly increases the level of protection for people and puts the UK at the forefront of APP fraud protections globally."

"Our approach incentivises banks and other payment firms to prevent APP fraud from happening in the first place while ensuring victims are protected in a consistent way."

"Payment firms are already getting ready by improving fraud controls and more people are getting their money back. We now expect the momentum to implement the full protections to increase. We'll be working closely with Pay.UK and payment firms to make sure they're fully prepared to implement the new requirement next year."