Fraud remains a stumbling block for merchants and customers alike, but it’s even more irritating when you identify a scam, report the issue, and the involved bank takes forever to pay you back!
One watchdog is launching a new proposal against banks that have not been paying back fraud victims in the UK. According to The Payment System Regulator (PSR), it’s wrong to delay reimbursements after confirming a fraud claim. Banks must speed up the compensation process.
During the launch, the regulator requested a public opinion on the proposal to fortify consumer protection for authorized push payments (APP). Customers face significant risks than news sources show, and slow compensation means more clients have their payments withheld even for cases that warrant compensation. The UK Finance counted APP fraud losses in the highs of $288 million just in Quarter-one of 2020.
The Payment System Regulator has also proposed policies requiring banks to reveal their refund rates (Research shows under 50 percent of the money lost to fraud is being compensated).
A more proactive approach seeks to shut the door on bad players who take part in APP scams by reinforcing an industry rule that will see banking institutions share fraud-related data among each other.
“We intend to fortify security protocols and prevent bad players from hurting more victims, says Chris Hemsley, MD of the PSR. “In our request for public opinion, we highlight the specific measures that will help mitigate fraud and boost payment security for all.”
So what does this campaign mean for banks? Check out the Payment System Regulator’s proposal, and feel free to leave your comments. The session is open until April 8, 2021.
Fraud remains a stumbling block for merchants and customers alike, but it’s even more irritating when you identify a scam, report the issues, and the responsible bank fails to pay you back! The PSR has proposed new regulations to see banks refund customers soon after a merchant is found guilty. Be sure to check out the Payment System Regulator’s proposal, and feel free to leave your opinions.
Author: Payment industry guru Taylor Cole is a passionate best payment processor who understands the complex world of merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.