Posted by AdviserDirect on 08/30/2019

UK banks plan transaction levy to compensate fraud victims

UK banks plan transaction levy to compensate fraud victims

 The UK’s biggest banks have proposed a radical solution to the £354m problem of bank transfer fraud — levying a “transaction fee” of nearly 3p on certain payments in order to reimburse the victims of scams.

The UK’s payment authority is consulting on proposals to introduce a small fee on ‘faster payments’ transactions above £30 made by customers. The proceeds would be collected by Pay. UK in a centralised fund and used to reimburse victims where neither the customer nor their payments provider could be blamed, and had done “everything expected of them” to prevent fraud.

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