Short Definition:
The Payment Systems Regulator is the UK body that has regulated payment systems like Faster Payments, Bacs, CHAPS and the card schemes since 2015, and is currently being absorbed into the Financial Conduct Authority.
Full Explanation:
Set up under the Financial Services (Banking Reform) Act 2013, the PSR sets access and governance rules for designated payment systems, polices interchange and scheme fees, and led the mandatory APP fraud reimbursement scheme. HM Treasury confirmed on 21 April 2026 that the PSR will be abolished and its statutory functions folded into the FCA, with the Financial Services and Markets Bill 2026-27 introduced to Parliament on 19 May 2026 to carry this out. This is not yet settled: the PSR keeps its full powers and continues operating as normal until the Bill passes and the transfer formally completes, expected to conclude by the end of 2026.
In Practice:
A UK SMB disputing card scheme fees or an APP fraud reimbursement decision today should still direct that complaint through the PSR's existing channels — the FCA hasn't yet taken over enforcement, and nothing about who to contact changes until the merger legislation completes.
Acronym:
PSR
Related Terms:
Source Link:
https://www.gov.uk/government/publications/psr-fca-consolidation (HM Treasury — Payment Systems Regulator consolidation)
Last Reviewed:
