These draft Terms of Reference explain how we intend to consider the potential for payment system operators (PSOs) to play a role in minimising consumer harm caused by authorised push payment (APP) scams in the UK.

APP scams occur when someone is tricked into instructing their bank to transfer money to a fraudster.

Why are we publishing this?

In December 2016 we responded to a super-complaint issued by the consumer group Which?. In our response we committed to a package of measures aimed at reducing this type of fraud and making it harder to commit.

The proposed Terms of Reference outline one part of this work, specifically the work that the PSR will be doing. We are consulting on our approach and welcome stakeholder feedback.

What are PSOs?

Payment system operators (PSOs) manage the systems, such as Faster Payments Service (FPS) or CHAPS, which allow us to make payments - either by moving money from our own account to another, or by using debit and credit cards to complete a transaction.

What are the objectives of this project?

As these are draft Terms of Reference, at this stage we are seeking feedback on our proposed approach to this work.

We have said we intend to 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.

If we conclude that new measures are appropriate, we will consider whether it would be best to introduce them through regulatory action or through other approaches (for example, industry-led). If we decide on a regulatory approach, we will develop proposals for consultation.

Which payments will the project focus on?

The work we are doing will focus on exploring how consumer harm from APP scams may be minimised through actions taken by PSOs. The two payment systems that consumers may use when making push payments are CHAPS and FPS, so our work will centre around these systems.

Who should read this document?

This consultation is relevant to participants in regulated payment systems under the Financial Services (Banking Reform) Act 2013 (FSBRA) - including any payment service providers which operate in the UK, consumers and consumer groups and anyone interested in our work following the Which? super-complaint.

Next steps?

We welcome stakeholders’ views on our draft terms of reference by 21 March 2017

You can send us your comments and responses to our consultation questions by emailing us at:  or write to us at the following address:

The Payment Systems Regulator Limited

APP scams project team

25 The North Colonnade

Canary Wharf

London E14 5HS


On 30 March 2017 we published the final Terms of Reference 

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