Don’t Wait: Why You Should Implement Confirmation of Payee (CoP) Now
Confirmation of Payee (CoP) is one of the most effective measures against fraud and error. But from 31 October 2024, CoP will no longer be ‘just a great to have’, it will also be mandatory by the Payment Systems Regulator (PSR). Let’s take a look at what the benefits are for Payment Service Providers (and their customers), if they start implementing CoP as soon as possible.
As early as 2019, the PSR directed the six largest banking groups in the UK to implement the CoP system. In the meantime, over fifty other financial firms have implemented the name-check service because they have seen the benefits. But now the PSR is mandating the second group of around 400 more financial firms to provide CoP.
The PSR mandate is not due until 31 October 2024, so why the rush? Well, there are several reasons why you can and should start implementing your CoP instruments as soon as possible.
- You need to be compliant on time
According to the PSR mandate, you need to be able to respond to CoP requests. You also need to be able to send CoP requests to other banks to verify beneficiary details, before initiating a payment.
- Control when you can go live
As we move towards the autumn 2024 deadline, there is a lot of implementation work to be done. This may lead to longer waiting and implementation times with the CoP-providers.
So it really pays to start implementing your CoP system now. SurePay is ready and willing to help you get there. And, the sooner you can start enjoying the benefits of CoP for you and your customers…
What's in it for you—and your customers?
The benefits of a seemingly ‘small’ change such as implementing CoP can be much greater than it first appears. First and foremost, CoP is there to help you meet your customers’ expectations. They expect the best security, and they need to feel secure when they pay.
CoP is a simple and efficient way to ensure that no mistakes are made. But there is more you and your customers can benefit from:
- Stay in the flow with onboarding and payments
One of the most important additional benefits is that the CoP contributes to a perfect user experience (UX) and onboarding, or payment flow. Currently, verifying customer data during or after payment often requires lengthy processes—slowing down the payment process, sometimes even redirecting it to another system.
- Reduce fraud
Of course (and unfortunately) some people will deliberately provide a false account number. Bank account fraud typically involves using an account belonging to a large organization, so it takes a while for the fraud to be noticed. In the meantime, the amount taken in error can add up. The fraudster is then difficult to trace.
Implementing a CoP system is therefore not only a must because of the PSR mandate, but you can also gain a lot from it. The only thing you need to do now is to get a clear picture of your situation. So please contact us, we will be happy to help you with our knowledge and expertise.