Pay.UK supports compliance with new payments industry legislation
We are pleased to have successfully delivered on, and gone beyond, our mandate to implement the Payment System Regulator’s (PSR) new APP reimbursement policy that comes into effect today, 7 October 2024.
First published by the PSR in 2023, the new policy prescribes mandatory reimbursement for victims of APP fraud, with the cost of losses split 50:50 between sending and receiving PSPs, as part of action to reduce instance of payment fraud in the UK.
In our role as payment systems operator, we have worked extensively and collaboratively with the industry to support in-scope PSPs in complying with the policy and meeting their legal obligations as part of the PSR’s Specific Direction 20 (SD20).
We have successfully delivered on this mandate and are satisfied that the industry is suitably prepared for the legislation, and any associated, resulting action.
Further to this extensive undertaking, we have gone beyond our mandatory requirements and developed a single, sophisticated, whole-of-market solution to facilitate the management of claims under the policy. Our Reimbursement Claims Management System (RCMS) will streamline the management of APP claims and support in-scope PSPs in meeting their legal obligations.
Our Chief Business Development Officer, Kate Frankish, said: “The launch of our RCMS is the culmination of months of dedicated work at Pay.UK and within the payments industry as a whole. Together, we have prepared the market for new legislation and worked to support compliance from 7 October 2024. While a significant achievement in its own right, I am immensely proud that we have gone beyond this mandate and delivered the RCMS. Designed to further support existing and new customers in meeting their regulatory obligations, it will also help to ensure that victims of APP fraud are reimbursed in a consistent manner, regardless of who they bank with.”
This work forms part of our wider Fraud Programme which sees us deliver a range of fraud detection, prevention and reimbursement initiatives to combat APP fraud in the UK. The programme will further expand Confirmation of Payee coverage, deliver an enhanced data-sharing capability (via a peer-to-peer API) and a Fraud Prevention Overlay Service.
