New Zealand banks to launch Confirmation of Payee feature

The New Zealand banking sector is introducing a new feature known as Confirmation of Payee to minimise payment scams and errors.

Confirmation of Payee is aimed at ensuring the account owner's name matches the account number before a payment is made. This feature is intended to help users of mobile apps and internet banking when making one-off payments, saving a new payee, or editing an existing payee.

The service is specifically applicable to payments between New Zealand banks, and it is important to note that it does not cover all types of transactions. Payments made to overseas accounts, previously saved payees (unless edited), or businesses with registered bill payee details, such as councils and utility companies, will not be checked. For the Confirmation of Payee service, users are urged to use the precise first and last name or business name registered to the account.

Kiwibank emphasises the importance of confirming a payee's details accurately. "A business' account name could be the legal name of the company, rather than its trading name," states the bank. Users will be able to access the new service through a Check payee details button which initiates the name and number confirmation process.

Upon using the service, users can expect responses such as Match, Partial match, or Not a match. "The matching response will help you decide if you want to proceed with the payment or save the payee, but it won't stop you from doing so," advises Kiwibank. The bank urges customers to remain cautious even if a Match response is returned and to be especially vigilant if told by the payee to disregard a Partial match or Not a match response.

The service could inadvertently affect payment timelines if incorrect details result in a Partial match or Not a match response, potentially causing the payer to delay transactions. Kiwibank advises, "To avoid delays, always share your exact account owner name and number with those paying you." This information can be easily shared through the bank's mobile and internet banking services.

Confirmed to be gradually implemented from late November 2024, not all customers will have immediate access to the Confirmation of Payee service. Kiwibank reassures its customers, "If you have our Kiwibank mobile app or internet banking set up, you'll receive a message when the service becomes available to you." Even for those without immediate access, any payees who do will require accurate details to facilitate faster payments.

Kiwibank stresses the importance of vigilance against potential scams associated with this new service. "Kiwibank will never contact you by email or a phone call to ask you for your login details," the bank warns. The institution also underscores that the Confirmation of Payee is a useful tool to protect against fraud, and further assistance can be accessed through various contact methods offered by the bank.

This new Confirmation of Payee service is another measure in the ongoing effort to enhance security and accuracy within banking transactions across New Zealand.