Bank account name matching "coming soon" when making a payment?

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Forums › Finance and wealth management › Bank account name matching "coming soon" when making a payment?

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#3233582 22-May-2024 18:01

Didn't spot it linked out, but herald have run with it via ASB sponsoring. No date however.

https://www.nzherald.co.nz/sponsored-stories/banks-to-add-further-protection-against-scams-and-fraud-with-confirmation-of-payee/ARLRZNT2E5FOBLFAHLHTNABTAI/

Behodar

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#3233584 22-May-2024 18:09

mudguard: You'll have a small typo and the payment will simply be rejected.

Thanks to the article linked above we now have the name of the thing, "Confirmation of Payee". I was then able to find this press release which says "It is then up to the customer to decide whether to proceed with a payment after they receive this notification."

Hopefully that's true and there will indeed be an option to proceed anyway.

mudguard

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#3233637 22-May-2024 21:50

Behodar:
mudguard: You'll have a small typo and the payment will simply be rejected.

Thanks to the article linked above we now have the name of the thing, "Confirmation of Payee". I was then able to find this press release which says "It is then up to the customer to decide whether to proceed with a payment after they receive this notification."

Hopefully that's true and there will indeed be an option to proceed anyway.

When a customer makes a payment they currently need to enter the recipient’s name and account number. Once it’s available, confirmation of payee will compare the name a customer has put into their payment details against the actual name registered against the account number and indicate whether that name matches or not

It is then up to the customer to decide whether to proceed with a payment after they receive this notification.

To me that sounds like it will just offer either match, or no match.

Zigg

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#3233640 22-May-2024 22:02

The banks will need to lengthen the Payee field. An account name like Joe Bloggs Plumbing Limited you can't currently fit it all in.

rugrat

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#3233642 22-May-2024 22:41

mudguard:

To me that sounds like it will just offer either match, or no match.

In hearld article it said it would offer close match as well.

wellygary

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#3233690 23-May-2024 09:24

rugrat:

mudguard:

To me that sounds like it will just offer either match, or no match.

In hearld article it said it would offer close match as well.

But its becoming quite clear that you won't get to actually see what the payee account name actually is, so you wont know if its just a typo, or a pretty different account...or what a "close match" actually is

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#3233694 23-May-2024 09:38

rugrat:

mudguard:

To me that sounds like it will just offer either match, or no match.

In hearld article it said it would offer close match as well.

Hmmm, security conscious people will then have to decide if a close match is good enough or if they'll want a full match before completing the payment. If I think I'm paying Microsoft for something, and the seller gives me his bank account and tells me that the account name is Microsoft NZ, but in reality he's a scammer that has set up an account with the name NZ Microsoft, presumably this would result in a close match. Would I think to myself, "close match, must be legit" and make the payment? Or should I be stubborn and say "Sorry, account names don't match, no payment for you"?

Also, there are plenty of places whose trading name is vastly different from their company name, eg XYZ Motel may be owned by J & L Smith Ltd, and therefore the bank account name would probably be J & L Smith Ltd. This information is going to have to be conveyed to anyone that might be paying via a bank transfer. I can see a lot of invoices, which usually include payment details, will need to be updated to reflect this.

logo

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#3233698 23-May-2024 09:48

eracode:

AB & CD Smith
AB Smith and CD Smith
Alpha Bravo Smith and Charlene Delta Smith
Mr AB & Mrs CD Smith
SMITH, ALPHA BRAVO & CHARLENE DELTA

The OCD part of me is asking why Charlene and not Charlie?

eracode

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#3233708 23-May-2024 10:30

logo:

eracode:

AB & CD Smith
AB Smith and CD Smith
Alpha Bravo Smith and Charlene Delta Smith
Mr AB & Mrs CD Smith
SMITH, ALPHA BRAVO & CHARLENE DELTA

The OCD part of me is asking why Charlene and not Charlie?

It was a little joke. 😀 Not a very good one but Charlene doesn’t think NATO is a good idea.

Sometimes I just sit and think. Other times I just sit.

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#3233713 23-May-2024 10:36

MurrayM:

Also, there are plenty of places whose trading name is vastly different from their company name, eg XYZ Motel may be owned by J & L Smith Ltd, and therefore the bank account name would probably be J & L Smith Ltd. This information is going to have to be conveyed to anyone that might be paying via a bank transfer. I can see a lot of invoices, which usually include payment details, will need to be updated to reflect this.

Bank accounts are often named like: J & L Smith Ltd T/A XYZ Motel.

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geek3001

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#3298004 16-Oct-2024 11:15

I have received notifications from two of my banks about the forthcoming Confirmation of Payee functionality for bank payments.

So far, both have advised that my account name for payment processing (as a natural person as opposed to a company/legal entity) will be my full first and last legal names, presumably based upon proof of ID info they already have, eg: Joseph Bloggs if that was my name.

I bank with multiple banks in NZ, so I hope the naming convention will be consistent across all participating banks, as I would not want to have to remember slightly different variations of my name, as my first name can be and is regularly shortened to a less formal name, eg: using above example, Joseph could be Joe or Jo, etc.

Will be interesting to see what happens to those who may wish to only provide their first name to a one-off private payment recipient and withhold their last name for privacy reasons, they likely wont be able to.

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SirHumphreyAppleby

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#3298005 16-Oct-2024 11:21

geek3001:

Will be interesting to see what happens to those who may wish to only provide their first name to a one-off private payment recipient and withhold their last name for privacy reasons, they likely wont be able to.

I received an e-mail from the BNZ yesterday regarding my business account. I expect the same would apply to personal transactions. I only use my first initial. I won't be giving people my first name just so they can match.

What happens if the details don’t match?

If the account details entered don’t match, the person making the payment may see a ‘partial match’ or ‘no match’ message. This could make them question whether they’re paying to the correct account.

The person making the payment can still decide to continue with the payment, but will be prompted to carefully check the account details, as it’s unlikely we’ll be able to get the money back for payments sent to the wrong account.

jamesrt

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#3298007 16-Oct-2024 11:24

https://www.getverified.co.nz/ is apparently the 3rd party provider for this functionality across the various NZ banks.

wellygary

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#3298008 16-Oct-2024 11:27

geek3001:

Will be interesting to see what happens to those who may wish to only provide their first name to a one-off private payment recipient and withhold their last name for privacy reasons, they likely wont be able to.

That's a consideration between the Payee and the Payer, nothing to do with the bank,

You can give out whatever details you like, but if the payer gets skittish because they only get a "partial match" its a thing between you two....

I'm guessing they wont publicise the guidelines for working out "non/partial/total" matching, ( to stop spammers gaming it)- but it might be useful to know if "bob" would get a partial match if the account name was "bob smith"

rugrat

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#3298010 16-Oct-2024 11:33

SirHumphreyAppleby:

I received an e-mail from the BNZ yesterday regarding my business account. I expect the same would apply to personal transactions. I only use my first initial. I won't be giving people my first name just so they can match.

Then the person paying if it’s not an exact manage could decide not to pay. It looks like if the wrong person is paid the onus is more on the person paying then the bank, the way I read it.

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