Authorised Push Payment (APP)
Authorised Push Payment (APP) refers to a digital transaction where a customer knowingly authorises a payment from their bank account to someone else. These payments are usually made through UPI, net banking, mobile banking, or IMPS/NEFT.
While APP transactions are convenient, they can be misused if customers are tricked into transferring money to fraudsters. Understanding how APP works helps users stay safe while making online payments.
What Is an Authorised Push Payment (APP)?
An Authorised Push Payment is a transaction where the sender initiates and approves the transfer of money themselves. Examples include:
- Sending money through UPI apps like Google Pay, PhonePe, Paytm
- Making payments using NEFT, RTGS, IMPS, or internet banking
- Paying merchants or service providers via QR codes
- Transferring money to a friend or family member online
Since the customer approves the payment, banks consider it an authorised transaction.
How Authorised Push Payments Work
Step | What Happens |
1. Payment Initiation | Customer enters amount, recipient details, or scans a QR code. |
2. Authentication | Sender verifies using UPI PIN, OTP, password, or biometrics. |
3. Bank Processing | The bank approves and processes the payment. |
4. Funds Transfer | Money moves instantly or within a few hours to the recipient. |
5. Confirmation | Sender receives payment success notification. |
APP Fraud: What You Should Know
APP fraud happens when users are manipulated or misled into sending money to a fraudster while believing the recipient is genuine.
Common examples:
- Fake customer care numbers
- Fraudulent investment schemes
- Job scams
- Impersonation of bank staff
- Fake online sellers
- Romance scams
- Refund scams
Even though the customer authorised the payment, it was done under deception.
Examples of Authorised Push Payment Frauds
Scenario | Description |
Fake Seller Scam | Fraudster posts a product online and asks for advance payment. |
Impersonation Scam | Fake bank executive convinces a user to transfer money. |
Investment Scam | User is promised high returns and asked to send money. |
UPI Request Scam | Fraudster tricks user into entering UPI PIN after sending a "Collect Request". |
Are APP Payments Reversible?
Banks generally cannot reverse an authorised payment unless the recipient agrees because the sender willingly completed the transaction. However, users should immediately report the issue so the bank can attempt to freeze or recover funds.
How to Stay Safe from APP Fraud
✔ Only transfer money to verified individuals or businesses
✔ Double-check bank account details and UPI IDs
✔ Do not rely on unknown customer care numbers
✔ Never share UPI PIN or OTP
✔ Avoid making advance payments without verification
✔ Install official banking apps only
✔ Ignore suspicious links, lottery messages, and offers
✔ Use secure networks—not public Wi-Fi
What to Do If You Become a Victim of APP Fraud
If you mistakenly transferred money:
1️⃣ Call your bank helpline immediately
2️⃣ File a complaint on National Cyber Crime Portal (cybercrime.gov.in)
3️⃣ Report it to your local police station
4️⃣ Keep screenshots and transaction details as evidence
5️⃣ Track updates through your bank’s complaint system
Acting quickly improves the chances of fund recovery.
Authorised Push Payments vs Unauthorised Transactions
Feature | Authorised Push Payment | Unauthorised Transaction |
Who initiates the payment? | Customer | Fraudster |
User consent | Yes | No |
Bank liability | Limited | Usually higher |
Reversibility | Difficult | Possible if reported promptly |
Authentication used | UPI PIN / OTP by user | Not used by user |
Why APP Awareness Is Important in India
With the growth of UPI, digital wallets, and online banking, Authorised Push Payments have become extremely common. While they improve convenience, fraudsters are increasingly exploiting users through deception.
Building awareness protects consumers and strengthens India’s digital economy.
Conclusion
Authorised Push Payments are safe and widely used for everyday transactions. However, users must remain careful to avoid deception-based frauds. Understanding how APP works—and following secure payment practices—helps ensure smooth, secure digital transactions.
FAQs on Authorised Push Payment (APP)
- What is an Authorised Push Payment (APP)?
An Authorised Push Payment is a bank transfer where the sender approves the payment and pushes money from their account to another account.
- Is Authorised Push Payment the same as push banking?
No. Push banking refers to a broader process where the customer initiates the payment, while APP specifically refers to confirmed payments that are authorised by the sender.
- What is an APP fraud?
APP fraud happens when a customer is tricked into sending money to a scammer, even though the payment was voluntarily authorised.
- Can banks reverse an APP transaction?
Usually no, because the payment was authorised by the customer. Reversal depends on the bank’s policies and how quickly the scam is reported.
- Can businesses use Authorised Push Payments?
Yes. Many businesses use APP for supplier payments, salary transfers, and automated payout systems.
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