APP fraud reimbursement: banks begin applying the 50/50 split rule
Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.
Payment Systems Regulator rules require sending and receiving banks to share reimbursement for authorised push payment fraud — up to £85,000 per claim, with a consumer standard of caution test.
By Money Guide editorial team
Published:
The Payment Systems Regulator's mandatory reimbursement framework for authorised push payment (APP) fraud is now being applied by participating UK banks and building societies. Victims tricked into sending money to fraudsters may be reimbursed up to £85,000 per claim.
Costs are split 50/50 between the sending and receiving payment service providers in most cases. Banks can refuse reimbursement where the customer failed to meet a 'consumer standard of caution' — for example, ignoring clear scam warnings or gross negligence — but the bar is high.
The rules cover fraud where the customer authorised the payment. Unauthorised transactions on your account remain protected under separate regulations and should be refunded by your bank in most cases.
Report fraud to your bank immediately and to Action Fraud. Keep records of messages, calls and screenshots. The Money Guide APP fraud guide explains the reimbursement process and how to complain if a bank refuses a valid claim.