Authorised push payment (APP) fraud: the new reimbursement rules
Quick answer: Since 7 October 2024 most victims of authorised push payment scams have a legal right to be reimbursed by their bank within five business days, up to a maximum of £85,000 per claim.
Since 7 October 2024 most victims of authorised push payment scams have a legal right to be reimbursed by their bank within five business days, up to a maximum of £85,000 per claim. The rules apply to faster payments and CHAPS within the UK and are enforced by the Payment Systems Regulator.
Last reviewed:
Primary source: https://www.psr.org.uk/our-work/app-scams/
What counts as APP fraud
APP fraud happens when a criminal tricks you into authorising a payment from your own bank account to one they control. Common examples are 'safe account' impersonation scams (someone pretending to be your bank or the police), invoice redirection, romance scams, purchase scams and investment scams.
It is different from unauthorised fraud, where someone makes a payment without you authorising it (e.g. a stolen card or hacked account). Unauthorised fraud is already protected under the Payment Services Regulations 2017.
How the reimbursement scheme works
From 7 October 2024 banks and other payment firms must reimburse victims of APP fraud sent via Faster Payments or CHAPS, where the receiving account is in the UK. The cap per claim is £85,000.
The cost is split 50/50 between the sending firm and the receiving firm, on the basis that both have a role in stopping fraud.
Firms must normally reimburse within 5 business days. If they reasonably need more information they can pause for up to 35 business days while they investigate.
When you might not be reimbursed
The 'consumer standard of caution' allows a firm to refuse or reduce reimbursement if you acted with gross negligence — for example ignoring a specific warning from your bank, or providing false information during the investigation.
Reimbursement does not apply to international payments, payments to your own accounts, or transactions that are not Faster Payments or CHAPS (e.g. card payments — those have their own protections such as chargeback and Section 75).
There is no protection if the original underlying transaction was unlawful (e.g. a payment for illegal goods).
Common questions
- How quickly should I report a suspected scam?
- Immediately — call your bank using the number on the back of your card. The earlier you report, the more chance of recovering funds and the smoother the reimbursement claim.
- What if my bank refuses to reimburse?
- Ask for the decision in writing, then complain via your bank's official complaints process. If you are not satisfied you can escalate to the Financial Ombudsman Service for free, up to six months after the bank's final response.
- Does the scheme cover business accounts?
- It covers individuals, charities and micro-enterprises (broadly, businesses with fewer than 10 employees and turnover or balance sheet under €2m). Larger businesses are not covered.