PSR outlines its proposal to ensure widespread coverage of Confirmation of Payee

02/12/2021

Confirmation of Payee APP scams Consumer Protection

  • New proposal to ease the transition into the next phase of Confirmation of Payee, and make it available to more banks and building societies in 2022 

  • The name-checking service has had a positive impact in preventing APP scams and accidentally mis-directed payments 

  • Proposals will allow the service to be extended to more people. 

Today, the PSR sets out its proposal to ensure the industry remains on track with establishing a single Confirmation of Payee (CoP) system. This will allow more banks and building societies to work together to ensure even greater number of customers are protected by the name-checking service.  

Confirmation of Payee (CoP) is designed to help stop fraud and accidently misdirected payments by checking whether the name of a payee’s account matches the name and account details provided by a payer. There are now more than one million CoP requests every day. The regulator directed the UK’s six biggest banking groups to implement the first phase of the service and by July 2020 there was widespread coverage.  

Phase 1 of CoP has had a positive impact in preventing what would have been a larger increase in Authorised Push Payment (APP) scams and it has also led to a reduction in accidently misdirected payments. The regulator has also seen reduced levels of fraud received by financial institutions which have implemented CoP.  

As a result, the PSR thinks that wider implementation of CoP is necessary to protect a greater number of people and business who make payment transfers. 

For more financial institutions to implement CoP, they need access to a technical environment for sending and responding to CoP messages, and common rules and standards. Work has been taking place to ensure that this cap