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New bank name checking service

We have begun to notice that some of our clients are experiencing difficulty in transferring payments to our bank accounts. We have raised this query with our bank so we can make sure our clients experience a trouble free service.

We have been advised that new confirmation of payee technology has been introduced by banking regulators. This confirmation of payee name checking service has only been introduced as a requirement for the main six banks; Barclays, HSBC, Lloyds, Nationwide, RBS and Santander. For the smaller banks this is not a regulatory requirement, at the moment. we understand that Metrobank, as a smaller bank, has not signed up to the scheme yet.

if you bank with one of the main six and try to send payments to a smaller bank you will be advised that the account is unable to check the payment. This may mean that your bank will refuse to make the payment. This should not happen as as long as you are happy that you have provided the correct account details to your bank you should be able to override the payment. The bank has a box to tick for this! So in these circumstances ticking the box is good!

We have checked on the UK Finance website for an official comment and they say

"Confirmation of Payee is a new way of checking account details to give customers and businesses greater assurance that they are sending payments to the intended recipient, helping avoid misdirected payments being sent to the wrong account as well as offering another important tool to help in the fight against fraud. A payee is the term used to describe the person or business that you are paying money to"

To provide a workaround to this problem we also have accounts with HSBC which our clients are able to use. If you do experience a problem please let us know and we will provide alternative account details.

This does not just apply to Metrobank so if you do have difficulties with online/telephone banking please check with your bank whether it is due to the new confirmation of payee system. This is clearly a system designed with banking in mind rather than it's customers!

If you would like to read more about the confirmation of payee scheme here is the weblink

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