Fraud Protection Boost: What You Need to Know About New Refund Rules from October 7th
Author: Louise Baxter - One minute read
What You Need to Know About the New Payment Systems Regulations (PSR) Reimbursement Rules Coming October 7th
What are the new rules?
The new PSR rules are all about making sure you’re protected if you ever get defrauded into sending money to a criminal from your bank account. This type of fraud is known as Authorised Push Payment (APP) fraud, where you think you’re making a legitimate payment, but you’re actually sending money to a fraudster posing as someone trustworthy.
Here’s what the new rules are all about:
Your Right to Get Your Money Back. (There are limits like £100 excess and a claim limit of £85,000.) If you have money stolen from you as a result of an APP fraud and you’ve done your part to stay safe, like double-checking who you’re sending money to, you’ll have the right to get your money back.
Better Info from Your Payment Provider: Payment service providers (PSPs) (Banks) will be required to give you clearer info about the risks of APP fraud. They’ll help you spot scams and know what steps to take to protect yourself.
Speedy Reimbursements: If you do get defrauded, these new rules mean you won’t have to wait ages to get your money back. PSPs will need to act quickly to sort things out. Usually five days, but even if they have to look into it a bit more, it should be no more than 35 days before you get a decision.
Thorough Investigations: When you report fraud, PSPs will have to investigate properly and keep you in the loop about what’s happening.
The PSR’s new rules aim to shift some of the responsibility back to the payment providers, making them step up their game in protecting you. This is great news because it helps you feel safer when you’re paying for things.
What Should You Do?
With these new rules coming into play, here are some tips for you:
Stay Informed: Keep an eye on what your payment provider is saying about these changes so you know your rights.
Be Cautious: Always be careful when sending money online.
Report Any Fraud: If you think you’ve been scammed, don’t wait—report it to your payment provider right away. The sooner you act, the better your chances of getting your money back.
In a Nutshell
The PSR’s new reimbursement rules kicking off on October 7th are a big win for consumers! They’re all about giving you more protection when using digital payments and making sure you feel safe while shopping online.