Media Announcement: New Zealand banks unite to give Kiwi’s more confidence when making payments

In May 2024, the New Zealand Herald published an article covering the Confirmation of Payee service. This is a summary of the article.

New Zealand’s retail banks are gearing up to introduce a new Confirmation of Payee service by the end of the year. The service is designed to help to reduce mistakes and identify scams when making payments to New Zealand based bank accounts.

What is Confirmation of Payee?

The service will help customers check if account names and account numbers match before making a payment, helping to give them confidence that their money is going to the right person. Notifications will show a match, close match, no match, account type can’t be checked or can’t check payee details right now.

Why it matters

ASB Digital Fraud Expert Alex Hinde explains that the new service empowers customers by providing them with crucial information before completing a payment. It’s a tool to reduce mistakes, but Hinde notes it won’t eliminate all scams.

While this extra step only takes a few seconds, it requires customers to be more thoughtful when making payments. Nicknames, such as "Mum," will no longer work; the correct account name must be entered for every payment, regardless of size.

Local solution, global inspiration

The NZBA is tailoring the service to New Zealand’s needs, learning from other countries’ experiences. The goal is to make the payment process safer without disrupting customers’ ability to transfer money quickly and easily.

Added confidence, not a silver bullet

While the new service will give customers greater confidence they are paying the correct person, it won’t apply to international transfers or online shopping scams, where credit card details are used. However, the service aims to make customers pause and reconsider before transferring money.

Read the full article here