Payment firms urge PSR to reconsider fraud refund rules

Payment companies are urging the Payment Systems Regulator (PSR) to delay or rethink fraud refund rules that are due to come into force in October, saying few firms are ready to implement them.

The rules will force banks and other payment firms to refund victims of authorised push payment (APP) fraud up to a limit of £415,000. The cost of doing so will be split between the companies used to send and receive the payment.

Trade body The Payments Association has written to the PSR calling for it to delay the measures by a year to“ensure the right policies, technology and systems are in place. It is also lobbying for a lower refund limit of £30,000.

Fintech trade body Innovate Finance is calling for the limit to be revised to £85,000, saying this cut-off would cover 99.7% of cases.