What is Confirmation of Payee?
Confirmation of Payee is a service for NZ-based payments which provides a check to see if account holder names and account numbers match before making a payment. This reduces the risk of making a mistake and paying the wrong person, and can help to avoid scams.
It’s important to remember that the Confirmation of Payment service is a pre-payment check. After the account holder name has been verified, you will still need to initiate the payment as the final step.
What is a payee?
A payee is the term used to describe the person or business that you are paying money to.
How does it work?
The Confirmation of Payee check is done using secure software. It compares the account information entered by the payer in their online or mobile banking app with the details held by the recipient’s bank.
The software checks if the entered account holder’s name matches the bank’s records for that account number. All account information used in the check is fully encrypted and is not stored after the process is complete.