How will the service protect me?
The Confirmation of Payee service means you’ll get an extra alert if you are about to pay the wrong account. This helps to protect against certain types of payment fraud, where scammers convince people they are paying legitimate businesses but instead direct the money to their own account. It can also help to prevent payment mistakes, where the customer has simply entered the wrong name or details by accident.
At the moment, banks can refuse to refund money taken from your account if it can prove you authorised the transaction, or were at fault because you acted with ‘gross negligence’.
The new system should help protect you, because if you are given a ‘yes’ confirmation when making a payment and later find out the payment was in fact made to a fraudster, you’ll be able to show you took ‘due care’ in making the transaction – and so are more likely to get your money back.
However, the system won’t protect against all kinds of payment fraud – for example, if a scammer tricks you into paying for goods or services which don’t exist.