The scheme in plain English
What is the PSR mandatory reimbursement scheme?
Since 7 October 2024, if you are tricked into sending money by bank transfer to a scammer — known as Authorised Push Payment (APP) fraud — your bank must refund you up to £85,000 within 5 business days. This is a legal right, not a goodwill gesture. The only way your bank can refuse is if you were grossly negligent — a very high bar that being deceived by a scam does not meet. The scheme covers Faster Payments (the standard bank transfer system) for personal and small business accounts.
🏦 Faster Payments only✓ Legal right to refund⚠ 13-month reporting deadline
Maximum refund per claim
£85,000
split between sending and receiving banks
Bank refund deadline
5 business days
from claim submission
Victim reporting deadline
13 months
from date of transfer
Scheme start date
7 Oct 2024
only covers transfers from this date
Coverage rules
Am I covered by the PSR scheme?
✅ Covered
Faster Payments transfers
Standard UK bank transfers (the system used by most online and mobile banking apps). If your bank's "send money" function was used, it almost certainly uses Faster Payments.
✅ Covered
Personal accounts
All personal current accounts at banks and building societies in the Faster Payments scheme. Includes online-only banks (Monzo, Starling, etc.).
✅ Covered
Small businesses (under £1m turnover)
Business accounts with annual turnover under £1 million are included in the scheme — a deliberate extension to protect small businesses.
❌ Not covered
CHAPS payments
Same-day high-value CHAPS transfers (typically used for house purchases) are not in the Faster Payments scheme and are not covered by the mandatory reimbursement rules.
❌ Not covered
International transfers (SWIFT/SEPA)
International bank transfers are not covered. Only domestic UK Faster Payments transfers qualify.
❌ Not covered
Transfers before 7 October 2024
The scheme only applies to fraud that occurred from 7 October 2024. Earlier fraud may still be covered by the voluntary CRM Code or FOS complaints — but not this mandatory scheme.
How to claim
How to make a PSR reimbursement claim — step by step
1
Report to your bank immediately — call the fraud line
Don't email — call your bank's dedicated fraud number (on the back of your card or the bank's website). Report the fraud as APP fraud or an authorised push payment scam. Ask them to try to recall the payment — speed matters, as funds may still be traceable.
2
Submit a formal PSR reimbursement claim in writing
Follow up your call with a written claim — email or letter. State explicitly: "I am submitting a formal APP fraud reimbursement claim under the PSR mandatory reimbursement rules effective 7 October 2024." Include: the date and amount of each transfer, the account you sent it to, and a brief description of the fraud. Your bank must respond within 5 business days.
3
Report to Action Fraud
Report at actionfraud.police.uk or 0300 123 2040. Get a crime reference number — this supports your bank claim and any FOS complaint. Also report the fraudster's account to your bank's fraud team for referral to the receiving bank.
4
If your bank refuses — escalate to the FOS
If your bank rejects your PSR claim, escalate to the Financial Ombudsman Service (FOS) for free within 6 months of their final decision. The FOS has strong powers to compel banks to reimburse under the PSR rules. Many PSR rejections are successfully overturned at the FOS.
FAQs
PSR scheme — questions answered
My bank says I was "grossly negligent" — is that valid?+
Gross negligence is a very high bar — significantly worse than ordinary carelessness. Being deceived by a convincing fraud does not meet this standard. Gross negligence would require something like: (1) your bank issued a specific, clear fraud warning about this exact payment and you explicitly ignored it; (2) you knowingly shared your PIN or passwords; or (3) you deliberately assisted the fraud. If your bank claims gross negligence, ask them in writing to specify exactly what conduct they say was grossly negligent. If their explanation is that you were "deceived" or "should have checked", that is not gross negligence — escalate to the FOS.
What if my loss was more than £85,000?+
The PSR scheme caps reimbursement at £85,000. For losses above this, you may have additional routes: (1) FOS complaint — the FOS can award up to £430,000 for authorised payment fraud cases; (2) civil litigation against the receiving bank if they failed in their fraud detection obligations; (3) civil litigation against any identified fraudsters. For large losses, consult a specialist fraud solicitor.
Does the scheme cover romance scams and investment fraud?+
Yes — the PSR scheme covers all APP fraud types, including romance scams, investment fraud, impersonation fraud (police/bank/HMRC), purchase fraud, and CEO/invoice fraud. The type of scam doesn't determine coverage — it's the payment method (Faster Payments bank transfer) that matters. Romance scam victims have had strong success with PSR claims, particularly where the bank failed to apply adequate fraud warnings before the transfer.
Does the scheme cover transfers made from a savings account?+
The scheme covers payments made via Faster Payments — the payment system, not the account type. Most transfers from savings accounts (including ISAs at mainstream banks) use Faster Payments for outbound transfers. However, some savings products have restrictions or use different transfer systems. Check with your bank whether the specific transfer used Faster Payments — if so, you're covered.
Related guides
Disclaimer: The PSR mandatory reimbursement scheme covers Faster Payments from 7 October 2024. Earlier fraud is not covered by this scheme. This guide is for information only and is not legal or financial advice. Eligibility depends on specific facts. ClaimValue is not regulated by the FCA or PSR.