Confirmation of Payee

Confirmation of Payee is a new way of checking account details to give customers and businesses greater assurance that they are sending payments to the intended recipient, helping avoid misdirected payments being sent to the wrong account as well as offering another important tool to help in the fight against fraud. A payee is the term used to describe the person or business that you are paying money to.

Typically, when a customer or business sets up a new payee or amends an existing payee’s details, Confirmation of Payee will enable them to confirm whether the details they have entered match the account of the person or organisation they are paying.

Confirmation of Payee will help you to check account details before you make a new Faster Payments or CHAPS payment.

Typically, when a customer or business sets up a new payee or amends an existing payee’s details, Confirmation of Payee will enable them to confirm whether the details they have entered match the account of the person or organisation they are paying.

Confirmation of Payee checks domestic payments only, so it will not be applied to inbound or outbound international transfers.

To ensure payments are correctly sent and received customers will need to:
• State whether the payment will be sent to a personal or business account
• Provide the exact name registered to the account they are paying (typically a full first name and last name), as well as providing the same account details to an individual or business they wish to receive a payment from.
• If paying a business, customers should ensure they follow any guidance given by a business and include the full business name or trading name.

Customers should always give the exact name that is registered to their account when arranging to receive a payment. This may not be the name they use. They may habitually use a name that is different to the one registered to their account for example a maiden name, nickname or middle name.

Confirmation of Payee will allow customers to be able to enter more than 18 characters in the ‘Payee name’ field in which to input the first and last name of the intended recipient or the business or company name.

Customers will be able to use Confirmation of Payee for payments sent to UK accounts which are identified by a sort code and account number.

All customers and businesses should follow the Take Five fraud safety advice:

Take Five

Criminals are experts at impersonating people, organisations and the police.

They spend hours researching you for their scams, hoping you’ll let your guard down for just a moment.

Stop: Taking a moment to stop and think before parting with your money or information could keep you safe.

Challenge: Could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.

Protect: Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud.

My money? My info? I don’t think so!

Payment transactions rely on the sort code and account number are to reference an account held by another financial institution and Confirmation of Payee adds an additional layer of protection before a payment is actually made. When a customer sets up a new payee or amends an existing payee’s details, they will be able to verify that the account belongs to the person or business they intend to pay before making the payment. This is because the bank will be able to check if the name supplied matches the one it holds for that account.

There are four main possible outcomes to the Confirmation of Payee check when a customer is making a payment:

Yes, match

If the customer used the correct name of the account holder, they would receive confirmation from their provider that the details match. The customer can then proceed with the payment.

No, close match

If the customer used a similar name to the account holder, (e.g. an abbreviated version of the original name rather than a first and last name or with a spelling mistake) they will be provided with the name of the account holder to confirm. It’s important to note that the account holder’s name registered to that account may not necessarily be the same name that is recorded on the corresponding bank card as different naming conventions may be used for card data.

If the customer recognises the name provided, they may opt to proceed with the payment. Alternatively, they will be able to update the details and check the name again or contact the intended recipient to confirm the details. Customers and businesses should always stop and think before ignoring a Confirmation of Payee response.

No match, check before proceeding further

If a customer enters details for the named account holder which do not correspond with the details held by the account provider, they will be told the details do not match. At this stage, it could be possible that the customer is being targeted by criminals and the payment is being requested for fraudulent purposes. The customer will not be able to see the actual name on the non-matched bank account.

Customers and businesses should always stop and make further checks if they do not get a match and confirm the account details of the person or business they want to pay by an alternative channel, e.g. a published telephone number on an official website, particularly if they have been asked to pay an amended or new account.

Further guidance on how to stay safe from fraud and scams can be found on the Take Five to Stop Fraud website.

Confirmation of Payee Unavailable

Where an account is not available through Confirmation of Payee, whether temporarily or otherwise, customers and businesses will be notified that the name is unable to be confirmed. Customers and businesses should follow guidance given by their account provider and may wish to take additional steps to ensure that their payment is being made to the correct payee, particularly if they have been asked to pay an amended, or new, account.

Customers and businesses should always stop and make further checks if they do not get a match, particularly where a payee advises or coerces them to proceed with a payment when the details do not match.

Situations where the name does not match could well be a fraudulent transaction, a scam or a simple error. Customers and businesses should not proceed with a payment if 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.

We urge customers to follow the Take Five to Stop Fraud advice below:

Take Five

Criminals are experts at impersonating people, organisations and the police.

They spend hours researching you for their scams, hoping you’ll let your guard down for just a moment.

Stop: Taking a moment to stop and think before parting with your money or information could keep you safe.

Challenge: Could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.

Protect: Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud.

My money? My info? I don’t think so!

Businesses should consider using additional procedures for when they receive a close or negative match on a Confirmation of Payee request. It is possible that you are being targeted by criminals and the payment is being requested for fraudulent purposes. You should confirm the account details of the person you want to pay by an alternative method e.g. a published telephone number on an official website.

Personal customers should also ensure they provide the exact name registered to their account, as well as the sort code and account number, to anyone who needs to make a payment to them. This name is typically their first name and last name.

This may not be the name they use. They may habitually use a name that is different to the one registered to their account, for example a maiden name, nickname or middle name.

Customers who hold joint accounts will only need to provide a single name registered to the account, however customers may choose to provide both names. The order that a name appears on a joint account will not affect the matching response.

It is also advisable for customers with names that have multiple spellings (e.g. Smith, Smythe, Smyth) to ensure the payer has the correct version.

The name registered to an account should be available in communications that customers have with their account provider and through their online or mobile applications. If a customer thinks they need to change the name their account provider has registered, or is unsure of the name registered, the customer should discuss this with their account provider.

At the beginning of August 2019, the Payment Systems Regulator (PSR) issued a specific direction to the UK’s six largest banking groups across all their brands (Barclays, HSBC including First Direct, Lloyds Banking Group, Nationwide Building Society, Royal Bank of Scotland Group and Santander UK) covering around 90 per cent of current accounts, to fully implement Confirmation of Payee by 31 March 2020. The PSR, mindful of the impact of COVID-19, extended this deadline to 30 June 2020.

A number of other institutions are expected to introduce Confirmation of Payee at a later date. In the meantime, if a receiving bank does not offer Confirmation of Payee then the paying customer will be advised that the recipient's (or payee’s) name is unable to be checked.

Banks and other financial institutions introducing Confirmation of Payee have been communicating information about Confirmation of Payee to their customers via their usual communication channels. If a customer is unsure about how Confirmation of Payee will affect them or have any questions, they should contact their account provider or look at their website.

Customers and businesses are advised not to respond to any communication concerning Confirmation of Payee that does not come from their account provider – customers are recommended to be cautious when clicking on links in any emails they receive, even if they seem to come from a genuine source. Confirmation of Payee will be expanded in time to include other accounts that use a reference number including savings accounts, mortgages and credit cards, as well as to Open Banking initiated payments.

In order to take advantage of Confirmation of Payee, it may be necessary for customers to update their online banking application.

At the beginning of August 2019, the Payment Systems Regulator (PSR) issued a specific direction to the UK’s six largest banking groups (Barclays, HSBC including First Direct, Lloyds Banking Group, Nationwide Building Society, Royal Bank of Scotland Group and Santander UK) covering around 90 per cent of bank transfers, to fully implement Confirmation of Payee by 30 June 2020.

The regulator provided the following instruction:
• From 31 December 2019: Directed banks must respond to Confirmation of Payee requests. From this date banks must have the capability to talk to each other. For example, a receiving bank must be able to notify the sending bank that there is not a match.
• From 30 June 2020: Directed banks must send Confirmation of Payee requests (as above) and notify the payer of the outcome – for example, if there was a name match or a mismatch, banks should notify the person making the payment.

Those institutions (including Bank of Scotland, Barclays, HSBC including First Direct, Lloyds Banking Group, NatWest, Nationwide, Royal Bank of Scotland, Ulster Bank, Santander) and their individual brands will now be introducing Confirmation of Payee between January to June 2020.

Certain accounts provided by these institutions may be exempt from the PSR’s requirement and other institutions are working to bring in this important protection at the earliest opportunity. If a customer is unsure about whether they will benefit from this new functionality, they should contact their bank or building society.

Confirmation of Payee is a new way of giving customers greater assurance that they are sending payments to the intended recipient, helping them to avoid making accidental, misdirected payments to the wrong account holder, as well as providing another layer of protection in the fight against 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. We urge customers to follow the Take Five To Stop Fraud advice. 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

While Confirmation of Payee will provide an extra level of reassurance to customers it does not automatically guarantee that a fraudulent payment will be detected and that the customer, if they fall victim to fraud, will be reimbursed.

When a customer or business sets up a new payee or amends an existing payee’s details, they will receive responses that will, or will not, provide confirmation that the name registered to the account of the person or organisation they are paying is correct.

The matching decision is made by the intended recipient’s bank, as it has the best knowledge about the name of the person or business that is being checked. No matter what the outcome of the name check, the decision on whether to proceed with a payment rests with the sending customer.

Customers and businesses should therefore always stop and think before ignoring a Confirmation of Payee response and follow the Take Five To Stop Fraud advice when conducting any banking activity. Customers should contact their account provider if they are concerned they may be, or have been, a victim of fraud.

At the moment, Confirmation of Payee is focused on “push payment” transactions, which are payments that customers initiate and authorise from their own account – typically internet or mobile payments rather than payments that are pulled from companies such as Direct Debits.

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.

No, the Payment Systems Regulator has mandated participating banks to implement Confirmation of Payee for the setting up of new payments and the amending of details for existing payments through Faster Payments or CHAPS. 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.

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.

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).

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.

Confirmation of Payee is a new way of checking account details to give customers (both personal and business) greater assurance that they are sending payments to the intended recipient, helping to avoid misdirected payments being sent to the wrong account as well as offering another important tool to help in the fight against fraud. A payee is the term used to describe the person or business that is receiving a payment.

Customers will be able to use Confirmation of Payee for payments sent to UK accounts which are identified by a sort code and account number.

Typically, when a customer or business sets up a new payee or amends an existing payee’s details, Confirmation of Payee will enable them to confirm whether the details they have entered match the account of the person or organisation they are paying.

Receiving Payments

• Ensure that all invoices or payment instructions state the correct name, account number and sort code. In some cases, businesses may use a trading name or a shortened name that may be different to the name held by the account provider as their account name.
• Businesses should use the name given to their account when invoicing customers or providing payment details; if they are unsure what this is, they should contact their account provider.
• Ensure their customers and partners are aware of the need to use the correct details when making payments to them.

Making Payments

• Use the name, sort code and account number stated on the customer invoice or payment instructions, if these have changed businesses should validate the change with the intended payee using known contact details.
• Businesses should consider introducing additional procedures for when they receive a partial/close or no match on a Confirmation of Payee request. It could be possible that they are being targeted by criminals and the payment is being requested for fraudulent purposes. They should confirm the account details of the person or business they want to pay by an alternative method e.g. a published telephone number on an official website.

There are four possible outcomes to the Confirmation of Payee check when a customer is making a payment:

Yes, match

If a business used the account name, (which if they are paying a personal customer is likely to be the full first name and last name) they would receive confirmation from their financial provider that the details match. The business can then proceed with the payment.

No, close match

If a business used a similar name to the account holder, they will be provided with the actual name of the account holder to confirm. If the business recognises the name provided, they can opt to proceed with the payment. Alternatively, they will be able to update the details and try again or contact the intended recipient to confirm the details. Businesses should always stop and think before ignoring a Confirmation of Payee response.

No match, check before proceeding further

If a business entered details for the named account holder which do not correspond with the details held by the account provider, it will be told the details do not match. At this stage, it could be possible that the business is being targeted by criminals and the payment is being requested for fraudulent purposes. The business will not be able to see the actual name on the non-matched bank account.

Businesses should always stop and make further checks if they do not get a match and confirm the account details of the intended recipient by an alternative channel, e.g. a published telephone number on an official website, particularly if they have been asked to pay an amended or new account.

Confirmation of Payee Unavailable

Where an account is not available through the Confirmation of Payee system, whether temporarily or otherwise, a business will be notified that the account is unable to be checked. This does not necessarily mean that a fraud is being attempted, it may be simply that the account is not on the system. A business should follow guidance given by its bank and may wish to take additional steps to ensure that the payment is being made to the correct payee, particularly if it has been asked to pay an amended, or new, account.

Further guidance on how to stay safe from fraud and scams can be found on the Take Five to Stop Fraud website.

You will know if you ask to be paid to your registered business name or a trading name. If the latter, you should check with your account provider that they have this name and can match to this, Whether you ask to be paid to your registered name, your account name in your account provider’s records, or a trading name, it should be available in your communications with your own customers.

It is likely that the account name is the legal or trading name provided at the time of account opening or subsequently notified to the account provider after a change of name. If a business thinks they need to change the name their account provider has for their account, they should advise their account provider of the details to ensure they show on the business’ account before any new payments are made to the new name.

Confirmation of Payee will help a business’s customers to check account details before they make a payment to them and help businesses to verify suppliers or other firms that they pay. The most important thing that a business can do to prepare for the introduction of Confirmation of Payee is to ensure:

1. That it is using the correct account payee names when making payments,
2. That its customers are provided with accurate account details, including account name, when making payments to them.

Single payments made via Faster Payments or CHAPS are required to be checked by Confirmation of Payee. Bacs payments, including Direct Debits, may also be subject to these checks depending on the provider.

Confirmation of Payee only includes sterling payments transacted within the UK, so it will not affect foreign currency payments or international transfers, sent or received.

Head Office Collection Accounts will not currently be subject to Confirmation of Payee checks but are likely to be part of the next stage of Confirmation of Payee development.

The six largest banking groups in the UK (Barclays, HSBC including First Direct, Lloyds Banking Group, Nationwide Building Society, Royal Bank of Scotland Group and Santander UK), who account for 90 per cent of bank transfers, will fully implement Confirmation of Payee by 30 June 2020. Some providers may choose to phase in the system earlier than this. Other account providers are also looking to introduce the service in 2020.

Businesses should contact their financial provider(s) to understand when Confirmation of Payee may be available to them.

Single payments made via Faster Payments or CHAPS are required to be checked by Confirmation of Payee. Bacs payments, including Direct Debits, may also be subject to these checks depending on the provider.

Certain accounts may be exempt from the PSR’s requirement: if a business is unsure about whether they will benefit from this new functionality, they should contact their bank or building society.

Customers and businesses are advised not to respond to any communication concerning Confirmation of Payee that does not come from their account provider or another trusted source. Confirmation of Payee will be expanded in time to include other accounts that use a reference number including savings accounts, mortgages and credit cards, as well as to Open Banking initiated payments.

Criminals are experts at impersonating people, businesses and the police. They spend hours researching your business for their scams, hoping you will let your guard down for just a moment.