Explainer: What is Confirmation of Payee?
Transferring money for a kitchen renovation in the NAB app? Using Internet Banking to put down the deposit for a car? Learn more about how Confirmation of Payee is being rolled out help tackle scams and reduce misdirected payments.
What is Confirmation of Payee?
Confirmation of Payee is a banking industry-wide initiative designed to help tackle scams and reduce misdirected payments. The functionality is being rolled out in the NAB App and Internet Banking over coming weeks, with this process starting from today. Gradually all customers will see this functionality in their mobile app and Internet Banking appear as we scale the roll out, ensuring a smooth experience.
How does it work?
Confirmation of Payee helps customers check that they’re paying the right person. It compares the account name, BSB and account number you enter with the details held by the receiving bank. You’ll see one of three results: a match, a close match or no match.
Do I need to sign up to Confirmation of Payee?
No. Confirmation of Payee is automatically being rolled out to customers who use the NAB app and NAB internet banking over coming weeks.
What should I do if a name doesn’t match?
If the details don’t match, that’s a red flag it might be a scam. Stop and confirm the payment details with the recipient using information you have sourced yourself directly from them. We recommend calling them or visiting their official website if it’s a company. This prevents potentially sending money to a criminal or the wrong place. It is very hard for banks to recover money once it has been sent.
What does a ‘close match’ mean? What circumstances might deliver that result?
A “close match” means the account details and BSB are similar to what the receiving bank holds. For example, you might have typed the account name as John Citizen but the receiving bank holds the account as J Citizen. Alternatively, you might have typed John James Citizen when the receiving bank holds the account as John Citizen.
Will Confirmation of Payee stop particular scams?
Confirmation of Payee will help target issues like business email compromise scams and mistaken payments, but it’s not a silver bullet. If you don’t get a match, best to stop and check the payment details before you hit send.
Business email compromise scams start with criminals hacking into business email accounts to alter payment details hoping recipients don’t notice the changes and proceed with a payment.
How is Confirmation of Payee different to PayID?
A PayID is an easy to remember nickname for an account and designed to help make payments simpler. The nickname could be a mobile number, email address or ABN.
Confirmation of Payee compares the account name, BSB and account number. . NAB customers will l automatically start to see it in the NAB app and Internet Banking over coming weeks as the roll out progresses.
Is this available for all NAB payments?
We’re rolling this out across the NAB App and Internet Banking over coming weeks. It’s specifically for payments to new payees when using a BSB and account number. Remember to make sure you download and use the latest version of the NAB app and Internet Banking.
What else is NAB doing to help stop scams?
NAB has taken action to protect customers from scams in the past three years. Key initiatives include:
Removing links from text messages to make it easier to recognise scams
Introducing payment alerts to digital banking
Blocking transactions to high-risk crypto platforms
Where can I learn more?
Visit nab.com.au/cop to find out more.
