Today, the payment systems regulator published its final terms of reference
PSR will consider whether it would be effective and proportionate for operators of push payment systems to play a greater role in preventing and responding to APP scams (and possibly wider fraud). The expanded role might be in the form of actions that the operators might take, or new requirements that the operators might place on PSPs using their systems.
If they conclude that new measures are appropriate, they will consider whether it would be best to introduce them through regulatory action or through other approaches (for example, industry-led). If they decide on a regulatory approach, they will develop proposals for consultation.
Push payments are payments where a customer instructs their bank to transfer money from their account to someone else’s account. In contrast, pull payments involve the person who is due to receive the money instructing their bank to collect it from the payer’s bank. An authorised payment is one where the customer has consented to the money being paid from the account. Unauthorised payments are those where a bank pays money from a customer’s account without their consent – for example, a payment made using a stolen payment card. In an APP scam, a victim is tricked into authorising a push payment.
There are two payment systems which consumers might use when falling victim to APP scams; CHAPS and Faster Payments Scheme.