When a bank does not support name checking

DaveMarsh

After looking on this site I decided to open a Tesco Fixed Rate savings account.

Went through all the online forms and was given a sort code & account number.

Went to my bank to set up a payment, message appeared that the destination bank (Tesco) does not support name check.  If I send money it is at my risk.

Contacted Tesco call centre, they confirmed they do not support Visa name check.  The man said he could guarantee my money would be safe.  I pointed out that if he works in a call centre he would not be likely afford to do that personally so could he tell me where Tesco guarantee this in their terms and conditions.  He went to see his supervisor and came back with this.  He said this covered it.

"What should I do if funds appear in my account I don’t expect?"

"You should contact us immediately. We will then investigate the source of these
funds and seek clarification if they are properly due to you."

I pointed out it did not.  What happens if (and I know it is unlikely), I use the information Tesco sent to me and my money goes to the wrong account?   My bank have covered themselves, Tesco are not giving any written indemnity?

Is there a list of banks that do support name checks?

Thanks

(Removed by Forum Team)

born_again

Look at it like this.
Would you have worried before confirmation of payee?

Tesco are only a savings bank now, so COP is often not part of a bank that only offers savings. As COP is more based on payments being made out of your account. Something not required on a savings account.

Just make sure you enter the details correctly & you will not have a issue 👍

No bank will give a written indemnity even using COP.

400ixl

Not sure what the issue is here. What would you have done before payee confirmation came out recently?

You put in the details of the Tesco account into the payee setup on your bank. It will say it cannot confirm the account name holder.

Check that you have typed in correctly and then proceed to set it up.

Transfer £1 via the new payee details. 

Log into your Tesco account and check that £1 has arrived. If it has then the payee setup is correct and you can transfer more funds across.

NanookOfTheNorth

I've opened but not yet funded a Tesco fixed rate account which says it can only have one deposit.  I also have some older instant access accounts with Tesco, so my plan is to send the money in chunks to the instant access (which pays a rubbish rate and has £0 balance), then transfer the full amount in one go from the Tesco instant access to the Fixed Rate.  Then you could be confident sending the funds to Tesco in smaller chunks (ie the £1 test payment first) and know it is received OK before you send the larger chunks to the instant access account.  You've 30 days to fund the fixed rate, so should be time to open the Internet Saver.

DaveMarsh

Answer, in the past I would have sent £1 to confirm the payment had been set up correctly, but these accounts only allow one payment ever, so that is not an option.

In the past opening a savings account in another bank would be a case of walking into a local branch and writing a cheque, hmm good luck with that.

Cheque in post?  Did you hear the BBC radio 4 program about people having insurance pay outs being intercepted.

In the past there was not so much scamming going on.

I am not doing this transaction in the past, but if I was I would have been cautious.  It may not be much to you, but it is to me.

NanookOfTheNorth

If you already have your login for Tesco Bank to see your account then it's easy to open the Internet Saver and see that account online too before you transfer anything - then transfer the money (£1 first) to the Internet Saver. Once you can see it you know it's setup correctly as a saved payee on your sending bank.  Then finally within Tesco transfer in one go all the money you want from the Tesco Internet Saver to the Tesco Fixed Rate.

wmb194

DaveMarsh said:

After looking on this site I decided to open a Tesco Fixed Rate savings account.

Went through all the online forms and was given a sort code & account number.

Went to my bank to set up a payment, message appeared that the destination bank (Tesco) does not support name check.  If I send money it is at my risk.

Contacted Tesco call centre, they confirmed they do not support Visa name check.  The man said he could guarantee my money would be safe.  I pointed out that if he works in a call centre he would not be likely afford to do that personally so could he tell me where Tesco guarantee this in their terms and conditions.  He went to see his supervisor and came back with this.  He said this covered it.

"What should I do if funds appear in my account I don’t expect?"

"You should contact us immediately. We will then investigate the source of these
funds and seek clarification if they are properly due to you."

I pointed out it did not.  What happens if (and I know it is unlikely), I use the information Tesco sent to me and my money goes to the wrong account?   My bank have covered themselves, Tesco are not giving any written indemnity?

Is there a list of banks that do support name checks?

Thanks

Dave

A few months ago I opened a fixed rate savings bond with Tesco Bank. I checked and quadruple checked that the sort code and account number were entered correctly and sent it and it arrived not long after.

NanookOfTheNorth's suggestion is a good one if you're nervous and want a work around for the £1 test issue but otherwise it sounds like you should just forget it. 

DaveMarsh

Unfortunately fixed rate accounts only allow one deposit, a bit daft as this would have been our approach. 

eskbanker

DaveMarsh said:

Unfortunately fixed rate accounts only allow one deposit, a bit daft as this would have been our approach.

Hence the suggestion of using a separate easy access Tesco account, in which to assemble the balance (with £1 first), before doing a single internal transfer into the fixed rate account.

Albermarle

DaveMarsh said:

Unfortunately fixed rate accounts only allow one deposit, a bit daft as this would have been our approach. 

I think Tesco are unusual doing that. There may be others the same, but most allow multiple deposits within a funding window . Usually 14 to 30 days.

I_am_a_robot

Opened a savings account did a £1 transfer, instantly received, transfered large amount Instantly received, days later cannot transfer between Tesco accounts as something to do with receiving something in the post Grrrrr