Over 350 more firms to join Confirmation of Payee

More than 350 further firms will join Confirmation of Payee (CoP), the account name checking service, by the end of October 2024, the Payment Systems Regulator (PSR) has said¹. The regulator also said there have been over 2 billion CoP checks already this year¹.

The expansion coincides with the start of mandatory reimbursement for authorised push payment (APP) fraud, which the PSR said begins on 7 October 2024 and applies to payments made on or after that date¹. APP fraud happens when someone is tricked into sending money to a fraudster by bank transfer¹.

The reimbursement protections cover individuals, microenterprises and charities¹. They apply to UK bank transfers made over the Faster Payments system or CHAPS¹. All types of payment firms are brought into the arrangements, including high street banks, smaller payment firms, building societies and e-money firms, but not credit unions, municipal banks and national savings banks¹. Card, cash and cheque payments have their own separate protections¹.

Under the new process, claims are to be reimbursed within five business days of a claim being made¹. Firms can "stop the clock" where they need more information, but must reach an outcome within 35 business days¹. Firms may apply an optional excess of up to £100, which cannot be applied to vulnerable consumers¹. The maximum claim is £85,000, which the PSR said will cover over 99% of claims, though individual firms may reimburse more¹. Where more than £85,000 is lost and not reimbursed, cases can be raised with the Financial Ombudsman Service, which has a compensation limit of £430,000¹.

Reimbursement does not apply where a claimant is found to have been complicit in the fraud or grossly negligent, though the PSR said gross negligence is a high bar and the exception does not apply to vulnerable consumers¹. Claims should be reported as soon as possible and within 13 months of making the fraudulent payment¹.

Why it matters for households

From 7 October 2024, people who are tricked into sending a bank transfer to a fraudster have a route to reimbursement that did not previously exist on a mandatory basis¹. The change affects individuals, microenterprises and charities making Faster Payments or CHAPS transfers between UK accounts¹. The amount recoverable is capped at £85,000 per claim unless a firm chooses to pay more, and a firm may deduct an excess of up to £100, except for vulnerable consumers¹. Timing matters: the five business day reimbursement window can be extended to a maximum of 35 business days where a firm needs more information¹.

The CoP expansion means more payments will be checked against the name on the receiving account before they are sent, which is intended to flag mismatches¹. The PSR said the service is designed to make sure money is sent to the right person or business¹.

What happens next

The reimbursement rules take effect for payments made on or after 7 October 2024¹. The additional firms are due to join CoP by the end of October 2024¹. The PSR has published frequently asked questions about the arrangements¹. It said it cannot investigate individual fraud cases, and that victims should contact their bank first, with unresolved complaints referred to the Financial Ombudsman Service¹.

For background on the name checking service, see Confirmation of Payee explained. Related coverage sits under regulation and policy and current accounts.