Cross-border payments: the gap in fraud protection

A UK reimbursement framework and European payee-name checks mark real progress, but they do not create consistent protection for small businesses facing authorised payment fraud across borders. Reseated’s evidence shows this is a reported problem across many countries, while its proposed standard calls for faster recalls and reimbursement that includes cross-border cases.

What happened

The UK Payment Systems Regulator’s APP reimbursement requirement took effect on 7 October 2024, and its first-year evaluation reported lower APP fraud and a higher share of victims reimbursed.

UK protections cover consumers, micro-enterprises and charities, with reimbursement of up to £85,000 per claim; sending and receiving payment providers share the cost equally, while international payments are excluded.
A first-year evaluation reported that APP fraud fell by 21% and the share of victims reimbursed rose from 54% to 65%.
The EU Instant Payments Regulation requires verification of payee from October 2025, but the dossier’s account of that measure does not establish a matching cross-border reimbursement guarantee for small businesses.

What it means for small businesses

Rules can offer meaningful protection within their defined scope, but eligibility, payment route and geography affect whether a small business can obtain help after fraud.

Name checks may help prevent misdirected payments, while rapid recalls and reimbursement address what happens when fraud succeeds; owners need both kinds of protection.

Reseated’s reports document experiences submitted from many countries, not the prevalence of fraud in each country or the outcome of individual claims.