The Payment Systems Regulator (PSR) has enforced the new Authorised Push Payment (APP) fraud reimbursement requirement. Starting now, UK banks must reimburse victims within 5 business days, ending the “voluntary code” era.
The New 50/50 Liability Split Explained
Previously, many banks refused refunds by claiming the customer was “negligent.” The new 2026 framework fundamentally shifts this liability. Under the new PSR rules, the cost of reimbursement is split 50/50 between the Sending Bank (your bank) and the Receiving Bank (the fraudster’s account provider).
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This “double-lock” incentive forces receiving banks to be much stricter with opening accounts, aiming to shut down “mule accounts” that criminals use to launder money. For consumers, it means consistent protection regardless of who you bank with.
Who Is Eligible for Mandatory Refund?
While the protection is robust, it is not unconditional. The PSR has outlined specific criteria that must be met for a claim to be valid under the mandatory scheme. Claims regarding international payments or crypto-wallets often fall outside this specific jurisdiction.
Must be a UK “Faster Payment” or CHAPS payment. (Cheques and cash are excluded).
Applies to individuals, charities, and businesses with an annual turnover under ยฃ2 million.
You must report the fraud to your bank within 13 months of the payment being made.
You must have heeded any “specific, tailored warnings” the bank gave you before you clicked send.
Official Claim Protocol (Step-by-Step)
If you have fallen victim to a scam, speed is critical. However, following the correct official procedure ensures your claim triggers the automatic PSR guidelines rather than a generic complaint.
Call your bank’s fraud line immediately (usually 159). Explicitly state: “I wish to raise a claim under the PSR Mandatory Reimbursement Requirement.” This logs the timestamp for the 5-day deadline.
Provide screenshots of messages, emails, or websites used by the scammer. The bank may pause the 5-day timer (“Stop the Clock”) if they need more information from you, so reply instantly.
If approved, the bank may deduct a standard “excess” of up to ยฃ100 (similar to car insurance), though some banks have waived this for vulnerable customers. The rest must be paid promptly.
Reimbursement Estimator
Calculate your likely refund amount. Note that the PSR allows banks to apply a maximum excess of ยฃ100 per claim, and the total liability cap is set at ยฃ415,000 per single fraud case.
The “Gross Negligence” Trap
The only valid reason a bank can now refuse a refund (aside from the customer being the fraudster) is “Gross Negligence.” It is vital to understand what this legal term actually covers to avoid accidental disqualification.
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Ignoring “Intervention” Warnings:
If the bank’s app popped up a warning saying “This account matches a known scammer” and you clicked “Continue anyway,” this is gross negligence. Generic warnings (“Don’t send money to strangers”) do not count. -
Lying to the Bank:
If the scammer told you to tell the bank “I’m paying a builder” when you were actually investing in crypto, and you lied to the bank staff, your claim will likely be rejected.
Official Escalation Channels
If your bank has rejected your claim or taken longer than 35 business days to provide a final response, you have statutory rights to escalate the matter. Use the links below.
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