The UK Payment Systems Regulator (PSR) has demanded the six largest banking groups to implement Confirmation of Payee (CoP) by 31 March 2020.
The six banking groups, Lloyds, RBS NatWest, Barclays, HSBC, Nationwide and Santander are involved in around 90% of bank transfers. This measure, CoP, is designed to protect banking customers from Authorised Push Payment (APP) scams, by ensuring that customers do not send payments to the wrong account or organisation.
The regulator consulted with the banking groups in May 2019. The PSR directs that from 31 December 2019 the banks must respond to confirmation of payee requests. From this date, banks must have the capability to talk to each other. For instance, a receiving bank must be able to notify the sending bank that there is not a match.
Furthermore, from 31 March 2020 the banks must send confirmation of payee requests and notify the payer of the outcome. For example, if there was a name match or a mis-match, banks should notify the person making the payment.
Earlier in 2019, the PSR developed a voluntary industry code setting out how APP victims can be reimbursed.
Source: www.thepaypers.com
