Last week it was reported that the new ‘Confirmation of Payee‘ security service for online payments may not be put into action until 2020.
Announced in October last year, the scheme was meant to be compulsory for all bank transactions by July. However, UK Finance, a banking trade body, has expressed that this timeline is ‘simply not achievable’.
The service aims to combat online payment fraud, and incorrect payments, by checking the name of the person or company you’re paying.
At the moment, criminals exploit this weakness in the payment process, by tricking people into paying into the wrong account. The new service, however, will send you a warning if it deems you’re about to send money to the wrong account.
How Will the Confirmation of Payee Service Work?
The Confirmation of Payee scheme was developed by Pay.UK to curb online payment scams and fraud. Currently, criminals can exploit the system by misleading individuals into paying into the wrong accounts.
Once in place, however, the Confirmation fo Payee service will double-check whether the name attached to a payment matches the sort code and account number. This should stop fraud, as it will warn you if the payment looks incorrect or dubious.
The service will be implemented on both payments to individuals and to companies.
The Confirmation Process
Once you’ve made an online transfer, the intended payee’s bank will carry out the check. You will then be given one of three responses:
- Yes – The bank will confirm that the name on the account and the payment details match, and you can proceed.
- No, Please Check – If you’ve misspelt the account holder’s name, or used a similar name by mistake, the bank will tell you the actual name on the account. You will then be prompted to double check this is correct, and either continue with the payment or cancel it.
- No, Wrong Name – If the name you’ve submitted doesn’t match up with the name on the account, and isn’t even similar, you will be advised to cancel the payment. You can, of course, still continue with the payment, but this will be at your own risk.
As you can see, the service will help to ensure that all payments are going to the right accounts. Moreover, by adding another level of security, online transactions will be less prone to mistakes and safer than ever before.
When Will the Service Launch?
In the initial plans, drawn up by the Payment Systems Regulator, there were two main deadlines that all UK banks were obliged to meet:
- By April 1st, 2019, banks needed to be able to respond to Confirmation of Payee requests from other banks
- By July 1st, 2019, all banks need to send Confirmation of Payee requests to their customers on all online transfers.
However, the latest news suggests that the scheme may not come into place until early 2020. UK Finance says that it’s unlikely that banks will be able to meet the proposed deadlines due to other factors, such as other new regulations and Brexit.
How Will the Scheme Affect Casino Deposits?
The Confirmation of Payee service will be applied to all online transfers made between banking accounts. As such, it will affect those who deposit at casinos via bank transfer.
It’s yet to be confirmed that the service will also be applied to debit card and credit card transactions, and there’s nothing in the proposed plans which refers to e-wallet services like Skrill, Neteller or PayPal.
That being said, it’s easy to see that the service is invaluable. If it does stop internet fraud, we expect that e-wallet services will follow suit.
This means that all casino deposits will have an extra security step, making them safer for players.