UK payments group urges incoming Government to make Big Tech refund fraud victims

finextra.com:

The Association says Big tech companies should be forced to pay compensation to victims of fraud on the basis of the ‘polluter pays’ principle.

The lobby group has also been increasingly vocal on the reimbursement rules set to be introduced by the Payment Systems Regulator which have set a maximum mandatory refund by banks for APP fraud victims to £415,000.

The Payments Association is instead calling for the threshold to be substantiallyy watered down to a £30,000 maximum.

The Association has also called for the appointment of a dedicated Anti-Fraud minister who would coordinate cross-departmental activities to ensure all parties bear some responsibility for the evolving threat of fraud.

The Labour Party is currently on course for a landslide victory in today's polls. Draft plans from the left-leaning party have indicated that it believes the PSR's rules to be “unfair and unsustainable” and that tech companies should shoulder the burden of compensating fraud victims.

In its letter to the incoming Chancellor, the Payments Association has also called for the the publication of an ambitious, whole-ecosystem National Payments Vision and Strategy, the delivery of the next phase of open banking and open finance, and the adoption of legislative measures towards the creation of a proper digital asset ecosystem that embraces web3, DeFi and smart contract standards.

Tony Craddock, director general of The Payments Association, says: "A clear vision and strategy from the new Government will generate significant investment and promote the UK’s position as the global payments leader solidified and see sustained growth in every UK region.

“We especially hope the Chancellor sees the benefits of lowering the threshold for mandatory