New Online Payment- Selecting 'Personal account', for an actual business account? What happens?

katesheet

When Paying an somebody on a new internet transaction,

and then you set up their name, sort code, acc number you select their account as business or personal,


If their account to be paid is actually a business account but you select personal, and pay

then what happens?


(so you make your payment to them, but have selected personal account but it was actually a business account)


The sortcode and account number are fine and for an actual account


then what will happen after the 'pay' button is pressed?

1) the person will get the money anyway, which ever you chose.
Whichever you select, business or personal the person will receive their money anyway.

2) The money will Not go through, as the giving/receiving bank will recognize it is Not a personal account but is a business account

3) It depends on which bank it is ?

4) something else?


and if you select business account, and pay there, will they get the same amount of money received? or there will be a deduction due to business fee?

marcia_

 I tried to pay a small business but selected personal and the app told me the account details didn't match. 

 Went back and changed it to business and no warning and the payment went through.

Savvy_Sue

marcia_ said:

 I tried to pay a small business but selected personal and the app told me the account details didn't match. 

 Went back and changed it to business and no warning and the payment went through.

My experience too: I wanted to set up a standing order to our accounts at the local Credit Union and selected Personal. Then I realised that of course the Credit Union has a Business account, and any money I send them goes into the teapot with my name on it. All fine after that. 

DullGreyGuy

katesheet said:

then what will happen after the 'pay' button is pressed?

1) the person will get the money anyway, which ever you chose.
Whichever you select, business or personal the person will receive their money anyway.

2) The money will Not go through, as the giving/receiving bank will recognize it is Not a personal account but is a business account

3) It depends on which bank it is ?

4) something else?


and if you select business account, and pay there, will they get the same amount of money received? or there will be a deduction due to business fee?

4/1 really

What you are talking about is really all to do with the new process that when you set up a new payee your bank will validate the name of the account holder matches the name you have entered. This is designed as a counter fraud measure to protect you, so someone doesnt spoof you and get you to change your payment to a third party that is who they claim. 

Not all banks subscribe to this service and certainly my experience is that you can push the payment through even if the names dont match, you just have to go through a load of warning messages.

So the ultimate answer is 1, they get the money as all that matters is sortcode and account number, 4 is just for the interim of having to agree you are sending it to a non-matching name.

Jeremy535897

I think that the distinction between a business and a private account is part of the same check as name matching. If the name doesn't match, or if the account type doesn't match, you get loads of warnings, but you can do the transfer anyway (or at least I could), when my wife's friend insisted she had given us the correct bank details for a third party payee, and we then discovered she had given us her own bank account details in a "senior moment" when she asked why we had paid her! (The amount involved was trivial.) It will of course give the bank added ammunition to resist a claim against them in the case of fraud.