To help combat fraud, the six largest banks have been required to sign up to the “Confirmation of Payee” scheme since June 2020. This creates changes to what people see when they’re sending payments to new payees in their online banking.

The fight against authorised push payment fraud

Fraudsters will sometimes pose as someone else and share account details with you for an account that they own, but isn’t in the name of the person you think you’re dealing with.

Until now, the payee name you type in your banking app isn’t checked against the name of the account holder that you send the money to before you send the funds, making these kinds of frauds easier to perpetrate.

Confirmation of Payees

With the introduction of Confirmation of Payee, where both the sending bank and receiving bank are subscribed to the scheme, the account name will be checked to make sure it matches the name of the intended recipient before you send the money.

If it doesn’t match, this will be highlighted to you to help you make a decision about whether to continue with the payment.

If the receiving bank doesn’t support it, this will also be shown as a warning.

Which banks support Confirmation of Payee?

You can find a list of the banks that support this scheme here.

Coconut & Confirmation of Payee

If we can't confirm the account details you've provided, we’ll be sure to warn you before letting you proceed with your payment.

Limited company accounts:

  • Ensure you have the correct names when you pay your clients/ suppliers.

  • If your trading name differs from that on your account, ensure your client has your account name too.

  • Make sure your clients have; your account number, sort code & name.

Sole trader accounts:

  • The name on your account is your personal name, not your trading name. Your customers & clients will need this when making a payment to your account.

Handling Client Queries

These warnings are given by participating banks when sending to any receiving banks that are not yet subscribed to the scheme. However if they are seeing this new warning for the first time it can cause some confusion.

You may wish to point them towards the UK Finance guidance on confirmation of payee to help them understand why these warnings are being displayed and that they are not specific to your account nor to Coconut, but something they’ll be seeing more often from now on when creating new payees.

Examples of bank warnings

So you can have an idea of what banks are displaying for these warning messages, here are some examples:

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