Payment Systems Regulator (PSR)
The UK regulator for payment systems — including Faster Payments, CHAPS, and Bacs — that introduced mandatory APP fraud reimbursement rules in October 2024.
Also known as: PSR
Last reviewed: 10 June 2026
The Payment Systems Regulator is the independent UK regulator of payment systems, established by the Financial Services (Banking Reform) Act 2013 and operational since 2015. It has concurrent competition powers and sector-specific regulatory powers over payment systems and the firms that participate in them, including banks and payment service providers.
The PSR's most significant consumer-protection intervention to date is the mandatory APP fraud reimbursement requirement, effective 7 October 2024. Under these rules, sending and receiving payment service providers in the Faster Payments scheme must reimburse most APP fraud victims up to £85,000 per claim, splitting the cost 50/50. The rules were designed to incentivise both sides of a payment to invest in fraud prevention.
The PSR also oversees card acquiring market reforms, works to improve the accuracy of Confirmation of Payee (the name-checking service for bank transfers), and publishes annual data on authorised and unauthorised fraud losses to inform public policy. Consumers who have a dispute about APP fraud reimbursement with their bank can escalate to the Financial Ombudsman Service.
Examples
- The PSR introduces rules requiring sending and receiving banks to reimburse APP fraud victims up to £85,000, with the cost shared equally between them.
- The PSR directs Faster Payments operators to expand Confirmation of Payee to all payment service providers to reduce misdirected payments and impostor fraud.