Payment options · United Kingdom; qualifying Faster Payments and CHAPS APP fraud
UK APP fraud reimbursement: scope, limits and how to claim
The £85,000 cap, the 7 October 2024 start date and why not every crypto or bank-transfer loss falls within the rules.
By Stonebridge Resolution · Published 4 October 2026 · Updated 4 October 2026
AI-generated illustration; not a depiction of a real case.
The short answer
Mandatory protections cover qualifying UK APP scam payments made through Faster Payments or CHAPS from 7 October 2024, with a maximum reimbursement level of £85,000. Eligibility, exclusions and claim-handling rules matter; this is not a blanket guarantee for every loss.
Understand what APP fraud means
Authorised push payment fraud involves someone being deceived into authorising a payment. It differs from an account takeover where the customer did not authorise the transfer. Describe the facts accurately so the bank can assess the right framework.
The protections concern qualifying UK payments and eligible customers, including consumers, microenterprises and charities. International payments, card payments and other payment methods have different rules. A loss involving crypto needs careful examination of the actual bank-payment route.
Check the payment date and route
The mandatory regime applies to qualifying payments from 7 October 2024. Earlier payments may need assessment under other rules, a bank's policies or complaint principles; the start date does not mean all earlier complaints are hopeless.
Payments into an account you control, followed by a separate onward transfer, can raise different scope questions from a direct payment to a fraudster. Do not assume a bank transfer used to buy crypto automatically qualifies. Ask the bank to explain its reasoning for each payment.
Report promptly and understand the time limit
PSR consumer guidance says to report the scam as soon as possible and within 13 months of making the fraudulent payment. For a sequence of payments, give the bank every date and ask how the time limit applies. Do not use the outer limit as a reason to wait: a quick report may also help attempts to stop funds moving.
Give the bank the payment details, the deception, relevant messages and police reference if available. Cooperate with reasonable information requests. Keep dates and copies so you can show when the claim was made and what you supplied.
The cap is not the only condition
The maximum reimbursement level is £85,000 for an eligible claim. Firms may apply an excess of up to £100 in relevant circumstances. PSR guidance includes protections for vulnerable consumers and a consumer standard of caution; those provisions need individual assessment.
The regime is not intended to cover ordinary civil disputes, and fraudulent claims are excluded. The rules concerning gross negligence have a high threshold; an unfortunate decision is not automatically enough to establish it. Ask for a reasoned written decision rather than accepting a vague reference to carelessness.
Know the decision and complaint process
Many qualifying claims should be reimbursed within five business days. A provider may pause the assessment for permitted information-gathering reasons, with a maximum assessment period of 35 business days under the framework. Check current official guidance and the bank's explanation for any pause.
If you disagree, make a formal complaint to the provider. An eligible complaint can then go to the Financial Ombudsman Service under its rules and deadlines. Preserve the final response; do not assume an ongoing police investigation extends complaint time limits.
Checklist
- Record payment date, rail, beneficiary and account ownership.
- Report promptly, within the applicable 13-month limit.
- Ask how scope, cap, excess and vulnerability were assessed.
- Keep the final decision and complaint deadline.
Common questions
Is every crypto investment scam covered?
No. Coverage depends on the qualifying bank payment and the facts, not simply on the scam involving crypto.
Does the £85,000 cap mean larger claims cannot be challenged?
The cap limits mandatory reimbursement under this framework. Other complaint or legal avenues depend on the facts; seek qualified advice for a large disputed loss.