Banks to roll out Confirmation of Payee from late November

Enhancing Payment Security

New Zealand's retail banks are set to roll out a new Confirmation of Payee service from late November, a move that will help protect your business and customers from scams, and reduce payment errors.

This service acts as an additional safeguard, allowing bank customers to verify that the account name corresponds with the account number before finalising a payment. By providing real-time notifications on matches, partial matches, or mismatches, it significantly reduces the risk of errors and potential fraud. However, it's essential to note that while this service enhances security, you should still remain vigilant against scams.

ASB example

When you or your customers make a payment to a new payee using the ASB Mobile Banking app or FastNet Classic internet banking, a check will show if the business account name and number are a match, partial match or not a match.

When receiving a partial match, or not a match, the person making the payment will be prompted to check they’ve entered the business account name and number correctly or to contact who they’re paying to confirm they have the correct details.

No matter the response, the payer can still go ahead with the payment if they choose.

Important: To ensure there is no delay in receiving your payments, make sure your correct payment details are included in your invoices and anywhere you reference payment instructions.

Make it easy to get paid

To make sure that your customers get a match, provide them with your business account name and number when invoicing. If this is a change from your usual payment details, let them know in advance.

The rollout

The rollout will occur in phases and each bank's approach may vary slightly due to the complexities involved in integrating this new service across different platforms. Not all platforms will have the Confirmation of Payee feature available immediately; some customers might find it on their desktop banking but not on their mobile apps at first, or vice versa. The ultimate goal is for all online personal banking channels to offer this service by Easter 2025. Participating banks include ANZ, ASB, BNZ, and several others, all collaborating to ensure a smooth delivery.

This initiative draws inspiration from similar implementations in the UK. By adopting the Confirmation of Payee, New Zealand joins a select group of countries prioritising customer security in financial transactions.

For more details on how the Confirmation of Payee can protect you, visit www.getverified.co.nz.

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