Banks will now details for payments to include exact matching account names and numbers for the recipient, and variations such as initials only may not be accepted. Photo: 123RF
Banks are ready to begin rolling out a confirmation of payee services which is expected to cut down on transaction errors and scams.
The service known as CoP for short, was set up by banks, but would be managed by GetVerified.
GetVerified chief executive Duncan Robertson said New Zealand was among the first countries to roll out the CoP service nationwide.
Major banks plan to begin offering the service over the next three to four months, with services by other financial service providers to follow.
Bank customers would notice the service when paying someone new, when editing an existing payee or making a one-off payment.
Instead of relying on initials or nicknames, customers will need to provide both the account name and number of the recipient, which need to match up with bank records.
Robertson said a no-match result will serve as a red flag to customers.
"There are no blocks to making payments, regardless of the result. But we encourage everyone to take a moment and think carefully before proceeding," he said.
A partial match could be due to a typo or the use of initials instead of a full name, while no match suggested the account name may not match the intended recipient.
"We recommend customers pause and double-check with the person they're paying, to ensure correct account details. Only proceed if you are confident in the match and trust the recipient," he said.
"Scammers are constantly evolving their tactics and CoP will not fully protect customers from scams."
