UK Policy Statement on APP Scams Reimbursement Compliance and Monitoring

The Payment Systems Regulator has published its policy statement on compliance and monitoring of the authorized push payment scam reimbursement requirement. As the operator of Faster Payments, Pay.UK is responsible for monitoring all directed payment service providers' compliance with the APP reimbursement rules. Where necessary, and where it has the powers to do so, it will take action to manage compliance.

The PSR's policy statement confirms the requirement for directed PSPs to register with Pay.UK by August 20, 2024. This is one way that PSPs will identify themselves as in-scope of the policy to Pay.UK and will help facilitate a shared FPS Reimbursement Directory. This directory will enable PSPs to find one another's contact details so that they can meet the requirements in the FPS reimbursement rules and related policy, and communicate in respect of FPS APP scam claims received. The PSR sets out the data under reporting standard A that sending PSPs in-scope of the policy are required to retain and report to Pay.UK monthly in respect of transactions they have sent, to enable it to effectively monitor compliance with the FPS reimbursement rules. In addition, the PSR states the reasonable limits it is placing on Pay.UK in respect of the use and disclosure of the compliance data it receives. Finally, the PSR set out its approach to requiring PSPs to inform consumers of their rights under the policy.

The changes will be delivered through amendments to the PSR's Faster Payments APP scams legal instruments: Specific Requirement 1 and Specific Directions 19 and 20. The reimbursement policy enters into force on October 7, 2024. The PSR notes that it intends to consult in late 2024 on proposals to mandate the use of Pay.UK's reimbursement claim management system and to shift to a new reporting standard. The PSR has also published a response paper to its May consultation paper (CP24/7) on guidance for PSPs on publishing APP scams, together with the final version of the guidance.

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