What is Confirmation of Payee?
Confirmation of Payee is a name checking service that helps avoid payments being accidentally misdirected.
The service is a new way to help give you (whether you are a personal or business customer) greater assurance that you are sending payments to the intended recipient, helping to avoid making accidentally misdirected payments to the wrong account holder, as well as providing another layer of protection in the fight against fraud and scams.
If you are unsure about how Confirmation of Payee works or have any questions, please contact your Relationship Manager.
What are the possible outcomes of a Confirmation of Payee check?
There are four possible outcomes:
Yes – If you had used the correct account name, you will receive confirmation that the details match, and can proceed with the payment.
Close match – If you had used a similar name to the account holder, you will be provided with the actual name of the account holder to check. You can update the details and try again, or contact the intended recipient to check the details.
No, the name is wrong – If you have entered the wrong name for the account holder you will be told that the details do not match and advised to contact the person or organisation they are trying to pay.
Unavailable – This occurs when it is not possible to check the name, for example as a result of timeout, customer opt-out or if the account doesn’t exist.
How does Confirmation of Payee work?
When setting up a new payment, a payment services provider (PSP) will be able to check the name, sort code, account number, plus, if applicable, secondary reference data such as a building society roll number, and type of account of the person or organisation that their customer is asking to pay, against the details held on the account.
How will Confirmation of Payee affect me?
You now need to know someone’s full name as per their bank account, number and whether it is a personal or business account, if you are going to pay them and you haven’t paid them before.
For individuals this will be their first name and last name. For businesses you will need the name on their bank account as this may not be the same as their trading name.
If you need to be paid by someone then you need to make sure that they know your first full name and last name, your sort code and account number and whether it is a personal or business account.
Your name may not be the same as the name on your bank card. For example, if you have your initials on your bank card, you will still need to give your full first name and last name to the person paying you.
It is also worth remembering if your account is still in your maiden name or if you use you middle name rather than first name.
The name on your bank account will be used in communications that your account provider has with you (such as a bank statement) and through your online or mobile banking applications.
If you think you need to change the name of the account, or you are unsure of the name to be used, you
should discuss this with your bank.
What happens if I try to pay someone whose bank doesn’t offer Confirmation of Payee?
If you try to pay an individual or business who banks with a provider who doesn’t support Confirmation of Payee, it will not be possible for your bank to check the account details are correct. You may receive a message back from your bank stating the name was unable to be checked, or asking for you to contact the recipient to check the details. This does not necessarily mean that the account details are incorrect.
What happens if I am trying to pay someone who holds a joint account – do I need to enter both names?
You will only need to provide one of the names registered on the joint account, however you may
choose to provide both names.
Would I get a match if I type in a person’s initials?
You would not get a match if you just type in a person’s initials. You now need to know someone’s full first name and last name, their sort code and account number, and whether it is a personal or business account, if you are going to pay them. For businesses, you will need to know the name on their bank account as this may not be the same as their trading name.
Even if the person or business that you are paying has their initials on their bank card, you will still need to give the full first name and last name to the person paying you or in the case of a business, the name on their bank account.
Do I have to provide the first and last name?
Yes – you now need to know someone’s full first name and last name, their sort code and account number and whether it is a personal or business account, if you are going to pay them.
What information do I need to pay a business e.g. a sole trader?
You will need to know the name of the business on their bank account, their sort code and account number, and whether it is a personal or business account if you are going to pay them. The name on a business’ bank account may not be the same as the business’ trading name so it is important to check this.
I am a sole trader and want to provide advice to my customers, what should I tell them?
You should ensure that any invoices or payment instructions sent to your customers include the correct name, account number and sort code given to your account. You should make sure to use the name given to your bank account, even if your business is known by a different trading name or shortened name; if you are unsure what this is, you should contact your provider.
You should also make your customers and any partners aware that they need to use the correct details when making payments or asking for payments to/from you.
What advice should I give people who are trying to pay me, to prevent any issues?
If you are an individual, you should make sure that you give your full first name and last name, sort code and account number and whether it is a personal or business account to anyone who is trying to pay you.
Your name may not be the same as the name on your bank card. For example, if you have your initials on your bank card, you will still need to give your full first name and last name to the person paying you.
For businesses, you should ensure that any invoices or payment instructions sent to your customers include the correct name, account number and sort code given to your account. If your business is known by a different trading name or shortened name, you should make sure that you use the name given to your bank account; if you are unsure what this is, you should contact your provider.
You should also make your customers and any partners aware that they need to use the correct
details when making payments or asking for payments to/from you.
What should I do if I am in the process of switching my current account and someone is trying to pay me?
Once you have opened your new account, you can set up payments on the new account. You should not set up new payments on your old account once the switch has started as these will not be included in the switch.
Any payments sent to your old account by mistake will be redirected to your new account, ensuring none of your payments will be adversely affected because of a switch.
Once your switch is complete you should make sure that you provide the correct details associated with your new bank account to anyone who is trying to pay you.
I have switched my current account, will I have to reauthorise all payee details on my account?
The first time you initiate a payment either to a person or a company from your new account (i.e. one-off payment) your new bank may name check these, if they offer the Confirmation of Payee service. If the details do not match, you would be asked to check the details prior to making the payment to the person or organisation.
How will Confirmation of Payee combat fraud?
Confirmation of Payee will not prevent fraud entirely but is one of a range of measures used by the industry to help combat fraud and the organised criminal groups responsible. These also include investing millions in sophisticated security technology, the Authorised Push Payment Scams Voluntary Code and the Take Five To Stop Fraud campaign in partnership with government.
Situations where the name does not match could well be a fraudulent transaction or a scam. Customers and businesses should not proceed with a payment if any of the details do not match. A customer should never feel embarrassed or reluctant to check if the payee name is correct. This could mean the difference between paying money to a correct account or into the hands of criminals. Customers should contact their account provider if they are concerned they may be, or have been, a victim of fraud.
Customers are the front line of defence against fraud and should ensure they keep their information up to date. They should always remember to stop, challenge and protect themselves, particularly when faced with:
- A ‘no match’ Confirmation of Payee response;
- Someone pressuring or coercing them to make a payment;
- Changes to account details;
- Payment requests from unknown persons;
- Someone changing their name or payment account.
More information on how to stay safe from fraud and scams is available on the Take Five website
https://www.takefive-stopfraud.org.uk/
Will payments that are already set up be checked by Confirmation of Payee?
No, payments to existing recipients and standing orders may not be checked using Confirmation of Payee although individual account providers may, in time, begin to check the details of existing recipients with Confirmation of Payee.
What payment types will Confirmation of Payee cover?
At the moment, Confirmation of Payee is focussed on push payment transactions, which are payments that customers initiate and authorise from their own account, typically internet or mobile payments. This may change in the future if the Confirmation of Payee checking service is extended to other payment types.
Some firms are required to implement a Confirmation of Payee check for payments made to new recipients through Faster Payments or CHAPS. Faster Payments are used for the majority of UK customer-initiated payments within the UK. It is not expected that Bacs payments, including Direct Debits, will be subject to these checks for the time being, however customers may begin to be asked to use Confirmation of Payee for these payments. Likewise, it is not expected that payments to existing recipients and standing orders will be checked using Confirmation of Payee; however, account providers may, in time, begin to check the details of existing recipients with Confirmation of Payee.
What happens if I make a payment to the correct recipient but for the wrong amount?
Confirmation of Payee provides a way of checking account details to give customers assurance that they are sending payments to the intended recipient. Most providers have a confirmation step within the payment journey where the customer can check the amount before approving it and we strongly advise that customers follow this process. If a customer transfers an incorrect amount, they should contact their provider immediately who will be able to advise on next steps.
How is consumer data protected?
Banks and other payment providers will use secure technology to safely exchange Confirmation of Payee requests. To be accredited to use Confirmation of Payee, companies must undergo rigorous security checks and also be regulated by the Financial Conduct Authority (FCA).
What support is available to vulnerable customers?
The banking and finance industry is committed to looking after every customer, especially those in vulnerable circumstances. Confirmation of Payee is being developed by account providers in line with their company policies on providing for these vulnerable customers and those with additional access needs. This includes integrating Confirmation of Payee within existing accessible channels and providing additional support, where necessary, for those who may struggle to use Confirmation of Payee.
What is the reference that is asked for in some Confirmation of Payee checks, and when is it required?
For most accounts, all the information needed to complete a Confirmation of Payee check is a sort code, account number, and payee name. However, some accounts require a reference to be entered for the payment to be applied to the final account, for example, a 16-digit credit card number when paying a credit card bill, or a roll number for some building society accounts. This is called Secondary Reference Data (SRD).
For these accounts, when a customer enters a sort code and account number for an applicable account, the Confirmation of Payee check will use the reference to ensure the account name is correct. If the details entered into the reference box are invalid or not recognised by the receiving payee Bank, the customer will be informed and requested to check the details.
Some payment service providers will not enable Confirmation of Payee checks on accounts that require SRD. Customers attempting to pay these accounts will continue to see an error message regardless of if the correct SRD was entered.
What payee name should I use when paying an account that requires reference data?
Customers need to ensure that they use the correct payee name and reference when setting up a new payment that requires a reference as part of the CoP check.
When a customer is making a new payment to a building society account that requires a roll number, they should enter the account holder’s name in the payee field (not the name of the building society receiving the payment).
When a customer is making a new payment to a credit card or other payment account (e.g. from the major beneficiaries biller list), they should enter the account holder’s name in the payee field (not the name of the company receiving the payment).
Can I opt-out from the Confirmation of Payee?
It is possible to request to opt out of your details being checked when someone is paying you, but you cannot opt out when you wish to pay someone else.
If you wish to opt out, please contact your Relationship Manager.
The Bank will review your request and inform you about an outcome.
I have opted out from the Confirmation of Payee, can I opt in again?
If you wish to opt in, please contact your Relationship Manager. Your request will be processed within 2 business days.