Payment friction
Confirmation of Payee (CoP) is an account name checking service that the UK banks are currently introducing to online banking payments. The service is intended to give businesses and consumers greater assurance that they are sending payments to the intended recipient.
Confirmation of Payee is expected be an effective way of combatting Authorised Push Payment Scams (e.g. where a fraudster tricks their victims into willingly making a large bank transfer to them).
Confirmation of Payee will also help to avoid payments being sent to the wrong account due to ‘fat fingers’ (keyboard errors) when we type in somebody’s Sort Code and Account Number.
Confirmation of Payee will introduce some payment friction to online payments but if the initiative mitigates fraud, and reduces the stress of sending money to people, then a small bit of friction is a reasonable price to pay.
Get ready for Confirmation of Payee
Reduce the risk of your payments being disrupted with these five helpful tips from Barclays:
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For more about Confirmation of Payee visit: https://northeypoint.com/2020/02/29/confirmation-of-payee-101/
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