New Zealand’s new Confirmation of Payee service: What it means for getting paid

From late November 2024, New Zealand banks are launching a new service called Confirmation of Payee (CoP). The service is designed to provide added security and accuracy for online and mobile banking account to account payments. It will help reduce mistakes and scams by enabling customers to check the intended recipient’s name and account before making a payment.

In this guide, we’ll break down how CoP works, the benefits it brings, and what you need to know to make sure you get paid without delay.

How the Confirmation of Payee service works

When you go to make domestic payments through personal online or mobile banking, the new service checks the recipient’s account name and number to see if they match bank records.

For customers making payments, there is no requirement to install anything new, as the service will appear as a new step in the payment process on your online or mobile banking app.

When you’re editing an existing payee, entering a new payee or making a one-off payment, the service requires you to enter the name registered to the account, rather than just a nickname or initials as you might have used in the past.

You will receive a pop-up notification that tells you the Match result before you decide whether or not to continue to make the payment.

What customers will see when they enter new payee details:

• Match: The name and account number match the recipient’s bank records.
• Partial Match: The name partially matches, you may have entered initials, a nickname or a minor typo.
• No Match: The name and account number do not match, signalling a possible error or risk.
• Can’t Check Payee Details: The account is not part of the CoP service or can’t be checked at this time.

If a customer receives a “No Match,” “Partial Match” or “Can’t Check” response, they are advised to contact the recipient to confirm the account details and only continue with the payment if they know and trust the payee.

What this means for receiving payments

For those who rely on timely payments, CoP means sharing accurate details is more crucial than ever. If your customer sees a “No Match” or “Partial Match” response, they may hesitate to complete the payment. It’s important to double-check your account details and make sure they’re easy to find on invoices or wherever you provide payment advice.

Here’s how you can make sure CoP works in your favour:

• Provide the Full Account Holder Name: Make sure customers know the correct name registered to your account by providing it clearly on your invoices or in your payment instructions to avoid mismatches.
• Double-Check Your Account Number: Verify that your account number is correct on all documents to avoid unnecessary delays.
• Use Clear Invoicing: Where possible, use consistent account details on invoices to help customers feel confident their payment will reach you.

Stay protected from payment errors and scams

While CoP reduces risks, fraudsters may still try to interfere with payments. Here are some ways to stay vigilant:

• Verify Requests: If a customer questions your payment details due to a “No Match” response, provide clarification directly.
• Remain Alert: Be cautious of unexpected requests or “urgent” messages about your account. Scammers may impersonate bank representatives to trick you into changing details.

Participating banks and rollout timeline

The Confirmation of Payee service will be available at ANZ, ASB, BNZ, Kiwibank, Westpac, and other participating banks. However, each bank is introducing the service at its own pace.

This means some customers may only see it on specific devices or for certain types of transactions like when setting up new payees, editing payee details, or making one-off payments.

As banks complete their rollout phases, they’ll notify customers of new availability and any enhancements to the service. The roll out to personal customers is expected to be completed by Easter 2025. Please visit your banks website for more details on their timeframes.

What to do if you encounter issues

If you encounter technical issues or receive a “Can’t Check Payee Details” notification, it may be due to a temporary issue or because the recipient’s bank isn’t yet participating in CoP.

In these cases, proceed with caution and confirm the details with the payee. Similarly, if you’re unsure about your own account information, most banks provide tools on their mobile or online platforms to help you locate these details.

Data privacy and security

The Confirmation of Payee service has been built with data privacy in mind. The service uses data encryption to check the account name and number without storing personal information. The service has been designed to comply with New Zealand’s Privacy Act 2020, ensuring that customers’ data remains protected.

Enhanced payment confidence with CoP

The service is a significant step forward in making bank payments safer and more reliable. By allowing customers to verify account names against numbers, it helps reduce the risk of mistakes and provides an additional safeguard against scams. While CoP doesn’t eliminate the need for vigilance, it adds a layer of confidence for everyday transactions, particularly as the service is adopted across more banks and platforms.

To learn more about the CoP rollout and participating banks, visit GetVerified.co.nz for the latest information or contact your banking institution.

Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.