Revolut Urges Irish Government to Reject UK-Style Fraud Refund Rules

Revolut has warned the Irish government against implementing consumer-friendly fraud refund rules similar to those recently introduced in the UK. These new regulations, which came into force earlier this month, ensure that customers who fall victim to scams are fully compensated in most cases. Under the UK system, costs are shared equally between banks and payment firms.

The measures focus on APP fraud (authorized push payment), where victims are tricked into transferring money to fraudsters. The UK’s rules apply to losses up to £85,000, a significant reduction from the originally proposed cap of £415,000. Despite the lower cap, financial institutions have voiced strong opposition to the new regime.

Digital bank Revolut is now actively lobbying to prevent the introduction of a similar system in Ireland. According to a report by *The Business Post*, Revolut, in a submission to the Irish Department of Finance, argued that such customer compensation programs create a “moral hazard” for consumers. The company warned that this could disproportionately impact the payments industry, resulting in increased costs.

Revolut also expressed concerns that the measure “could lead to undesirable results, increasing levels of fraud, as is now the case in the UK,” according to *The Business Post*. This position echoes the arguments made by finance firms in the UK, which have also raised concerns about the impact of the new system.

Additionally, there has been growing pressure from UK-based lenders for social media companies to shoulder part of the responsibility for fraud compensation. Finance firms argue that many scams originate on social media platforms, which, they claim, are not doing enough to police fraudulent activities.

As the Irish government considers its own approach to fraud compensation, Revolut’s warning adds to the ongoing debate on how best to protect consumers while managing the financial burden on payment providers and banks.