What is APP fraud reimbursement?

How it works

1. Authorised push payment fraud is when you are tricked into sending money to a fraudster by bank transfer. The APP fraud glossary page covers that crime. This page covers the reimbursement protections. ¹
2. The measures apply to UK-to-UK transfers over Faster Payments or CHAPS. They do not cover card, cash or cheque payments, which the PSR says have their own protections. They do not cover civil disputes with a legitimate supplier, where there was no intent to defraud. They are also different from unauthorised fraud, such as a stolen card. ¹
3. Contact your bank, building society or payment firm first, and within 13 months of the fraudulent payment, according to the PSR. Also report the fraud to Report Fraud, or to Police Scotland on 101 in Scotland, or consent to your bank reporting it. ¹²⁶⁷⁸⁹

What the scheme covers

The PSR consumer page says all types of APP fraud are covered, and gives impersonation and romance scams as examples. Many types of payment firm are in the arrangements, including high-street banks, smaller payment firms, building societies and e-money firms. Credit unions, municipal banks and national savings banks are not included, according to that page. ¹

What to know

• The PSR says you will not get your money back if you are found to have been complicit in the fraud or grossly negligent. It describes gross negligence as a high bar, and says that exception does not apply to vulnerable consumers. ¹
• Firms may apply an optional excess of up to £100, or a lower excess, or none. The excess cannot be applied to vulnerable consumers. See the PSR consumer page, and ask your bank how it applies the rule. ¹
• The maximum claim under the scheme is £85,000. The PSR says individual firms may choose to reimburse more. ¹

How to protect yourself

• The PSR consumer page says you can expect to be reimbursed within 5 business days of making a claim. Firms may stop the clock if they need more information. They must still arrive at an outcome within 35 business days. These timescales belong to the PSR scheme. ¹
• Where more than £85,000 is lost and not reimbursed, the PSR says you can take the case to the Financial Ombudsman Service. The FOS award limit is £455,000 for complaints referred on or after 1 April 2026. That figure applies where the acts or omissions were on or after 1 April 2019. The PSR says the Ombudsman looks at each case on its merits. ¹⁵
• This is general information, not legal advice. The scheme rules and each firm's process still apply. ³

Frequently asked questions

If I was tricked into sending money to a fraudster, will my bank have to pay me back?

Only if the payment is in scope and no exception applies. The scheme covers eligible APP fraud on UK Faster Payments and CHAPS transfers made on or after 7 October 2024. The PSR says you will not get your money back if you are found to have been complicit in the fraud or grossly negligent. Firms may apply an optional excess of up to £100, and the usual claim cap is £85,000. ¹

How long does the PSR say a reimbursement claim should take?

The PSR consumer page says you can expect to be reimbursed within 5 business days of making a claim. Firms may stop the clock if they need more information, but must arrive at an outcome within 35 business days. Those timescales belong to the scheme. ¹

What if I disagree with the firm's decision?

You can refer the matter to the Financial Ombudsman Service, which looks at each case on its merits. The PSR cannot investigate individual cases. ¹²⁴