New rules requiring banks to reimburse people who have been tricked into transferring money to a fraudster came into force on Monday (October 7).

Reimbursement is mandatory up to the value of £85,000 under the rules set by the Payment Systems Regulator (PSR) and firms can also opt to apply an excess of up to £100.

Some account providers have pledged to waive the excess – and some may also choose to consider claims for more than £85,000.

Despite the new rules, whether or not bank transfer fraud victims receive the full amount they lost may depend on who they bank with.

How to avoid scams

With that in mind, lets take a look at what some of the major banks have said around the new  reimbursement policy.

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Nationwide Building Society

Director of protect at Nationwide, Jim Winters, said: “We’ve decided not to charge our customers the £100 excess if they are victims of fraud or scams.

“We will also continue to review on a case-by-case basis any claims for £85,000 and over.

“It is vital we support victims of crime in their time of need while identifying ways to crack down and prevent fraud and scams before they take place, stopping organised crime and gangs in their tracks.”

Virgin Money

Virgin Money said it is not planning to apply the voluntary excess, including claims under £100.

Virgin Money said it is not planning apply the voluntary excess.Virgin Money said it is not planning apply the voluntary excess. (Image: Mike Egerton/PA Wire)

TSB

TSB, which has been operating its own fraud refund guarantee since April 2019, has pledged to waive the £100 excess.

The bank said it will also continue to review claims outside the scope of the rules on a case-by-case basis.

Customer support director at TSB, Nicola Bannister, said: “We welcome these new rules that should prove a game changer to consumers.”

Starling Bank

Starling said that, as it believes the fight against fraud is a shared responsibility, it will assess each case, and it may apply a £50 excess per claim.

NatWest (includes RBS and Ulster Bank)

A NatWest spokesperson said: “We’re continuing to invest in our people and processes to better protect our customers from the criminals who target them.

“Under these new regulations from the PSR, we may apply a fixed excess of £100 to the total amount reimbursed to a customer.

"This is assessed on a case-by-case basis and with regard to the specific circumstances of each customer.”

Reimbursement is mandatory up to the value of £85,000 under the rules set by the Payment Systems Regulator (PSR).Reimbursement in cases where people have bee tricked into transferring money to fraudsters has become mandatory under new rules set out by the Payment Systems Regulator. (Image: Tim Goode/PA Wire)

Barclays

Barclays customers may be required to pay an excess of £100 as part of their claim and the bank will assess claims on a case-by-case basis.

A Barclays spokesperson said: “The protection of our customers’ funds and data is our highest priority.”

The bank added its “continued investment in robust security systems” and ongoing efforts to educate customers on scams helps to keep scam rates down.

Lloyds Banking Group (includes Lloyds, Halifax and Bank of Scotland)

Lloyds Banking Group customers may be required to pay a £100 excess.

The bank has said it recognises there may be extenuating circumstances in some cases.

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Santander

Santander has said if a reimbursement is made, it may charge a £100 excess and this will be assessed on a case-by-case basis.

HSBC UK and First Direct

The banks will be applying the £100 excess and said they remain supportive of a reimbursement model for consumers.

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A HSBC UK spokesperson said: “All of us have a role to play in preventing fraud and scams.

“We want to encourage customer caution, particularly when it comes to lower value purchases made online.

"This is why we will be applying the excess to the total amount reimbursed to customers, while taking into account the specific circumstances of each customer where appropriate.”

Monzo

Monzo will be implementing the £100 excess on fraud claims on a case-by-case basis.