‼️ UK ONLY: New protections FOR CUSTOMERS AGAINST FRAUD coming into force on 7th October
📝 As of 7th October 2024 new rules come into force, providing protection to individual customers that fall victim to APP scams (Authorised Push Payment fraud). These are transactions whereby a customer MAKES/AUTHORISES a payment that turns out to be fraud/scam.
💲 YOU CAN GET A REFUND UP TO £85,000 FOR PAYMENTS/TRANSFERS MADE IN THE UK (INTERNATIONAL TRANSFERS AND/OR INVOLVING CRYPTOCURRENCIES ARE NOT COVERED).
☎️ Why is this so important??
✅ Prior to 7th October, there was no requirement to provide refunds whereby a payment/transfer was authorised by the account holder, instead there was a voluntary code in place (and only a handful of BANKS were members – so payment providers, such as Wise (Wise Payments Limited) didn’t sign to the code).
🔒 There is a big difference between Payment Providers and Banks in the UK, but this is not the purpose of this post – if you have any generic questions about your individual payment provider/bank, let me know but I can’t guarantee I know the answer.
📍 Now, be careful, as these protections do not cover self-employed people but includes micro companies (limited company which employ fewer than 10 people and whose annual turnover and/or annual balance sheet does not exceed 2 million euros). So fellow small business owners, self-employed, BE CAREFUL!
✅ OTHER PROTECTIONS IN PLACE IF YOU FALL VICTIM OF FRAUD:
💳 Both credit and debit cards allow customers to ask for a chargeback if there are any disputed transactions, though this is a voluntary system operated by the card schemes, so you are not guaranteed to get your money back.
💳 If you use a credit card to buy goods or services and there are problems, and you paid some (or all) of the cost by credit card and the cash price of the goods is more than £100 but less than £30,000 then the transaction could be covered by Section 75 of the Consumer Credit Act. This allows you to raise a claim against your credit card provider and you may be able to get your money back.
