when will name checks on bank payments be introduced?

OceanSound

According to this source, 'banks and building societies should have the technology [for name checks] in place by April [2019], with the system up and running by July [2019].' However, it's now become apparent that it won't be introduced until early next year. i.e. 2020.

I recently made a payment to halifax clarity card using monzo app. Of course, monzo does not have a search for organisation feature like hsbc (or nationwide I believe), so you have to manually enter the name. On HSBC you can simply search for 'halifax clarity' and it will come up with 'Halifax clarity mastercard'.

when I made payment on Monzo, I actually put my name as the payee - because it wasn't particularly clear from the clarity statement who the payee is. However, upon closer inspection I can see that the statement does mention the payee in a subtle way. Under the heading 'how to pay' it has 'telephone banking with another bank' under that it says 'halifax credit cards can receive Faster Payements'. So, presumably this is a strong hint as to who the payee should be if we do payment manually.

Anyway, I did call halifax support soon after making payment and was advised that the name does not matter. Indeed, it didn't matter because payment was credited to my clarity account few minutes later. Perhaps if/when the name does start to matter the clarity statement will clearly indicate the payee name alongside the account number and sort code? Should we hold our breath?

[Deleted User]

Why do you need it?

If someone wants to make a payment to my CC and they don’t know my name then by all means let them

OceanSound

!!! wrote: »

Why do you need it?

If someone wants to make a payment to my CC and they don’t know my name then by all means let them

I don't think it works like that .

we cannot use just the name to make a payment. It's there as a precaution. So, when we go to make payment using sort code, account number and name. The system can detect that the name we have entered is different to the actual account holder. If so, it will throw a warning to us, so we can pull the plug there and then.

Anyway, usually when paying credit cards we need to put the card number as reference number. So, someone making a payment to your Credit card will need to know your card number (not your name).

jimbo26

I think the 'name check' technology is to guard against people sending money to individuals (fraudsters) rather than paying credit cards, store cards etc.

bengalknights

Seems to be working on Barclays as when i entered a payee with a different name it showed a message saying doesnt match do you wish to proceed.

This was Barclays to Barclays however.

eskbanker

OceanSound wrote: »

According to this source, 'banks and building societies should have the technology [for name checks] in place by April [2019], with the system up and running by July [2019].' However, it's now become apparent that it won't introduce until early next year. i.e. 2020.

The Payment Systems Regulator initiated a consultation process on 9 May, to close by 5 June, including a proposal for the six main banking groups (Lloyds Group, Barclays Group, HSBC Group, Royal Bank of Scotland Group, Santander Group and Nationwide Building Society) to commit to implementing Confirmation of Payee by 31 March 2020.

Smaller players will therefore effectively have more latitude on timing, so, based on this draft proposal being agreed, Monzo aren't compelled to introduce it in March 2020.

However, in the absence of CoP being implemented, the voluntary code introduced in May 2019 offers greater protection against APP scams, which is one of the main reasons for CoP in the first place, so the participating banks (Monzo haven't signed up) are already on the hook for the cost of scams enacted by misdirecting consumers.

Robin9

It may be a slightly different issue but I am confused with how does the system will work when it is checking payee against a/c number ?

I could be paying in (over the counter or scans) a cheque to my a/c which could read R9 Payee, Mr R9 Payee, Rxxxxxxx9 Payee, R9 Y Payee etc and my surname is one that gets misspelt.

How will it work ?

eskbanker

Robin9 wrote: »

It may be a slightly different issue but I am confused with how does the system will work when it is checking payee against a/c number ?

I could be paying in (over the counter or scans) a cheque to my a/c which could read R9 Payee, Mr R9 Payee, Rxxxxxxx9 Payee, R9 Y Payee etc and my surname is one that gets misspelt.

How will it work ?

That is a completely different issue!

This thread refers to the forthcoming Confirmation of Payee initiative, which introduces some validation of payee name when electronic payments are being made, such as faster payments from online banking.

To the best of my knowledge, there's no plan to change validation of names on cheques....

OceanSound

I wonder if both 'Halifax clarity mastercard' and 'halifax credit cards' will be allowed or only one of them.

As for paying money to personal accounts, what about names with the apostrophe like O'Brien. Both O'Brien and OBrien allowed?

18cc

This link will give hopefully some insight into the way the check will work

http://www.fasterpayments.org.uk/press-release/new-name-check-safeguard-payments-revealed-october-2018