PSR (Payment Systems Regulator)

The Payment Systems Regulator (PSR) is a statutory body established under the Financial Services (Banking Reform) Act 2013, accountable to Parliament and working alongside the Financial Conduct Authority (FCA). Its remit covers the interbank payment systems used in the UK, including Faster Payments, CHAPS, and card networks. In the context of consumer protection, the PSR's most significant power is its ability to mandate reimbursement rules for victims of authorised push payment (APP) fraud.

Following years of voluntary codes, the PSR introduced mandatory APP fraud reimbursement rules that took effect in October 2024. Under these rules, banks and payment service providers that are part of the Faster Payments scheme are generally required to reimburse victims of APP fraud up to a set limit, with both the sending and receiving institutions sharing responsibility. There are exceptions for cases of consumer gross negligence or deliberate fraud, and certain categories of transaction are excluded.

Consumers do not interact with the PSR directly. If you have been a victim of APP fraud, you should first report to your bank, which is obligated to assess your claim under the reimbursement rules. If your bank rejects your claim or you are unhappy with the outcome, you can escalate to the Financial Ombudsman Service (FOS) for free adjudication. The PSR's website at psr.org.uk publishes consumer guidance and the full text of the reimbursement rules.

Status as of 19 September 2026: the PSR is due to be abolished, but it has not been yet. On 11 March 2025 the UK government announced that the PSR would be abolished and 'will mainly be consolidated into the Financial Conduct Authority', adding that 'The regulator will continue to have access to its statutory powers until legislation is passed by Parliament to enact these changes'. In its April 2026 consultation response, HM Treasury said it would ensure 'the necessary transitional provisions are made in legislation to transfer pre-existing PSR requirements, technical standards, other legal instruments, and guidance to the FCA'. The Financial Services and Markets Bill, which contains a clause stating 'The Payment Systems Regulator is abolished', completed its House of Lords stages on 15 September 2026 and was awaiting its second reading in the House of Commons when this entry was reviewed. It is not yet law, and as drafted the abolition would take effect only on a day the Treasury appoints by regulations. Until then, nothing changes for fraud victims: report to your bank first, and escalate to the Financial Ombudsman Service if your claim is refused.