Industry15th November 2019

ClearBank responds to Pay.UK’s decision on the Authorised Push Payments Contingent Reimbursement Model

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ClearBank welcomes the decision of Pay.UK Board not to approve the proposed implementation of a fund for “no blame” authorised push payments (“APP”) fraud cases and supports Pay.UK's recommendation of a flexible self-funding model that meets the needs of different PSPs and gives customers peace of mind.

Whilst ClearBank is supportive of and fully committed to ensuring that victims of APP fraud are refunded in “no blame” scenarios. ClearBank believes the implementation of a mandated levy would have had a detrimental impact on competition in the market and the overall fraud controls of banks.

ClearBank strongly believes that self-funding is a better outcome for the industry and consumers. A self-funding mechanism, now supported by Pay.UK, would ensure that payment service providers would proportionately be obliged to refund victims of APP fraud in no blame scenarios. This would create an incentive for businesses to invest in effective fraud controls and mitigation measures as the implementation of such controls will have a direct financial impact on the business and will encourage further innovation to prevent fraud.

Philip House, Chief Governance and Legal Officer of ClearBank said:

“Today’s announcement is welcome news for consumers and the industry alike. ClearBank is confident that self-funding achieves the same consumer protection outcomes as the “no blame” fund and we strongly feel that the APP CRM Code is what will drive consistent outcomes for customers.”

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