How confirmation of payee will improve the payment experience.
Each year, thousands of businesses are victim to authorised push payment (APP) fraud. In 2018, APP scams cost UK consumers £345m, of which only £83m was recovered.
Confirmation of Payee (CoP) aims to fight APP fraud by ensuring customers are sending payments to the intended recipient and avoid misdirected payments by adding a layer of protection. In other words, it is an ‘account name checking service’ that can help avoid payments being accidentally misdirected.
APP frauds occur where a customer is pushed into authorising a money transfer to an account they believe is a legitimate payee. Going forward, CoP will require customers to know the exact name details of the business as stated on the invoice or on their payment instruction. Business will need to provide the exact account name or trading name to anyone they wish to receive a payment from. Making CoP available to payers will help SMEs prevent misdirected
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