What do payee & payer mean?
You may need to provide additional details, like your address or account number, so the utility company can apply the payment to your account. Invoice fraud involves criminals targeting businesses by posing as a regular supplier and making a request for their bank account details to be changed, often by email.
When making a payment, customers should always stop and undertake further checks if they do not receive a ‘Confirmation of Payee’ match against the details they have been given. Customers should take particular care if a payee advises or coerces them to proceed with a payment when the details do not match with the Confirmation of Payee check. Confirmation of Payee is being introduced by a number of banks from March 2020 for payments (including online and mobile) made via Faster Payments or CHAPS.
Businesses are then tricked into sending money to an account controlled by the fraudster rather than the genuine supplier. Often the criminals will try to acquire details from businesses, such as the date when regular payments are due, to make their approach more convincing. 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. 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.
Low-Cost Ways To Transfer Money
Confirmation of Payee will help customers check account details before they make a payment. Currently, only payments made via Faster Payments or CHAPS are required to be checked by Confirmation of Payee. Bacs payments, including Direct Debits, will not be subject to these checks for the time being.
• 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. The banking and finance industry is committed to looking after every customer, especially those in vulnerable circumstances.
If a customer transfers an incorrect amount, they should contact their provider immediately who will be able to advise on next steps. 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. When customers set up a new payment, or amend an existing one, banks will be able to check the name on the account of the person or organisation being paid.
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. If a business used the correct account name, they will receive confirmation from their financial provider that the details match.
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.
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. When a customer sets up a new payee or amends an existing payee’s details, they will be able to confirm the name they enter matches the name registered to the account of the person or organisation they are paying. Currently, only the sort code and account number are used to reference an account held by another financial institution. With the introduction of Confirmation of Payee, when a customer sets up a new payee or amends an existing payee’s details, that institution will be able to check if the name supplied matches the name it has on record.
If a customer is unsure about how Confirmation of Payee will affect them or has any questions, they should contact their account provider. 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, 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. Typically, when a customer 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.
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. 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. 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.
- A payee is the term used to describe the person or business that you are paying money to.
- Situations where the name does not match could well be a fraudulent transaction or a scam.
Representative Payees for Social Security
• 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.
Payee Examples
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 is unsure about how Confirmation of Payee will affect them or have any questions, they should contact their account provider. From next year banks will have to alert customers if they transfer money to a new account and the name does not match as part of a new scheme from the UK payments operator. 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 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. If you’re setting up online bill payments from your checking account, the payee is the business you want to pay (your utility provider, for example). Providing payee information tells your bank who receives the money and where to send the check.
What is a payee account?
A payee is a party in an exchange who receives payment. The payee is paid by cash, check, or another transfer medium by a payer. The payer receives goods or services in return.
Customers should contact their account provider if they are concerned they may be, or have been, a victim of fraud. A payee is the term used to describe the person or business that is receiving a payment. Situations where the name does not match could well be a fraudulent transaction, a scam or an error.
Where an account is not available through Confirmation of Payee, whether temporarily or otherwise, customers and businesses will be notified that the account is unable to be confirmed. If the customer recognises the name provided, they may opt to proceed with the payment.
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. Banks and other financial institutions introducing confirmation of payee are currently in the process of communicating information about Confirmation of Payee to their customers via their usual communication channels.
Payee
If the account name is correct, customers will receive confirmation and can make the payment. If the name is nearly but not quite correct, they will be given the actual name to check and then update the details. If the name is completely wrong, they will be advised to contact the recipient to get the correct details. 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.
A payee is the term used to describe the person or business that you are paying money to. Situations where the name does not match could well be a fraudulent transaction or a scam.