What is Confirmation of Payee?
Confirmation of Payee (CoP) is an account name-checking service. It helps to make sure payments are sent to the correct recipient and are not falling victim to scams, by checking the name on an account before a new CHAPS or Faster Payments payment is made.
CoP is one of the ways the finance industry is tackling fraud. To help keep your money safe, it’s important that your information is up to date and you have the full name of the person or business you want to pay.
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 and type of account of the person or organisation that their customer is asking to pay, against the details held on the account. The response clients get means they can make an informed decision about whether or not to continue.
There are four possible outcomes:
It’s a match: If the client has used the correct account name, he will receive confirmation that the details match and can proceed with the payment.
It’s a close match: If the client had used a similar name to the account holder, he would be provided with the actual name of the account holder to check. He can update the details and try again, or contact the intended recipient to check the details.
No, it’s not a match: If a client has entered the wrong name for the account holder he will be told that the details do not match and be advised to contact the person or organisation they are trying to pay.
Unavailable/unable to confirm: 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.
Can I opt out of Confirmation of Payee?
You can’t opt out of CoP when you’re making a payment to someone else. If you have a noteworthy reason you can request to opt out of having your details checked when other people try to pay you. CoP is being introduced to improve payments between UK banks and reduce instances of fraud as well as payments going to the wrong account. To be effective, it’s essential that everyone participates. If you opt out of CoP, when a person or business tries to pay you they’ll get a message that your details can’t be checked. Clear Junction recommends all clients remain opted in to CoP.
If you have a serious reason and you still want to opt out please contact your Client Services Manager to submit the request. Once we have your request we will review and process it within 30 days.
Can I opt back in to Confirmation of Payee?
Yes, you always have the right to opt back in to CoP! If you want to opt back in please contact your Client Services Manager to submit the request and we will process your request within five working days.
Will my data be secure?
Yes! CoP operates in a very safe closed environment between participants, who are all regulated by the Financial Conduct Authority (FCA). The whole structure of CoP has been designed to only share certain information between certain parties for certain purposes. Banks and payment services providers use the open banking directory service and secure technology to safely exchange CoP requests with other participants. To be accredited to use the service, banks and payment services providers must undergo rigorous security checks and are regulated by the FCA.