Confirmation of Payee

Affordable access to CoP in the UK.

The clock is ticking

With the October 31st deadline for Confirmation of Payee readiness approaching, we’re committed to making the integration as simple and straightforward as possible, so you can focus on your core services.

What is Confirmation of Payee (CoP)?

Confirmation of Payee (CoP) is a banking security feature that verifies the recipient’s name alongside their account number and sort code during payment initiation. This added verification helps mitigate fraud and ensures payments reach the intended accounts, offering users heightened protection.

From A-B: how CoP works

Request initiation

The Payer wants to add a new payee and shares relevant data, including account name, sort code, and more.

Data verification

Details are securely sent to the Respond Participant, who then checks these against their own records.

Quick feedback

Within 1.5 seconds, a CoP response is generated, either indicating infeasibility or confirming a match status.

Decision stage

If results aren’t a match, warnings appear, and the consumer can finalise the process.

Benefits of Confirmation of Payee Service

Reduces payment

Helps fight fraud

Adds a layer of
customer comfort

Confirms the type of

Prevents criminal

Forms a part of the wider
Open Banking

Why is Confirmation of Payee being mandated?

Confirmation of Payee (CoP) is a response to the nearly £0.5 billion lost to authorised push payment fraud and misdirected payments in the UK.

Purpose of CoP:

Minimise fraud: Combat Authorised Push Payment (APP) Fraud and reduce incorrect payment processes.

Ensure compliance: Implement industry-standard, reliable software.

Maintain performance: Cater to customer needs and handle prescribed transaction volumes.

Prioritise security: Safeguard customer data and details.

Open Banking is the underlying principle that Confirmation of Payee is built upon. So, the system you choose should be top-tier, proven, and most crucially, secure. As you adopt CoP, align it with your broader strategic goals, influencing your selection of providers and software.

Why were payments processed incorrectly?

Confirmation of Payee (CoP) is a response to the nearly £0.5 billion lost to authorised push payment fraud and misdirected payments in the UK.

The old system:

Payers provided their bank or PSP with payee details: name, account number, and sort code.

Payments were processed without verifying the correctness of payee details.

Mistakes led to payments going to wrong accounts with matching names or due to incorrect keying of details.

Retrieving funds from erroneous transfers was challenging; only about 25% of APP losses historically were recovered.

This system flaw became an opportunity for fraudsters.

The solution:

Confirmation of Payee. This corporate banking software system cross-references account names with account numbers and sort codes in real time, plugging the loophole and enhancing transaction security.

Want to learn more about CoP?

Get insights from seasoned experts with hands-on experience in CoP implementation. In this white paper, you’ll learn:

  • The urgency of starting your CoP journey now.
  • The advantages of partnering with a reputable Open Banking provider.
  • Mastering all facets of an effective CoP integration.

What does this mean for Banks, Financial Institutions & Corporates

Banks/Financial Institutions

Precise in transactions:

Prior to the actual movement of money, ensure deposits and payments are directed to the right accounts, preventing errors and fraud.

Use case:

If a customer sending money from their bank, to another account in another bank, is clearly told that the name of the account they are sending to is not the name of the account they want to send to, they have the opportunity to correct the problem before sending and thus resolve any issues that would have arisen by sending the money and then realising it was misdirected to the wrong account.


Ensuring accurate payments:

Imagine a utility company needing to remit funds to numerous customers. The company, not having these bank details initially, requests and then receives them from the customers. Before initiating the payment, it’s vital to verify not just that the bank account name corresponds to what the customer has provided, but also matches the utility account holder’s name.

Use case:

This helps me immensely as all monies will safely go to the correct account. I know that mistakes would have been made if we did not instruct the check, and the nature of the ‘rebate’ means it is open to fraud and abuse however this method absolutely stops this from happening.

obconnect CoP solutions

obconnect’s Confirmation of Payee (CoP) solutions are primed, rigorously tested, and ready for deployment.

Precise in transactions

Opt for our Software as a Service (SaaS) Managed Service. While your business retains the service credentials, obconnect expertly manages and operates it for you. This SaaS model lets you seamlessly integrate with our turnkey solution, with obconnect taking the helm. Rest assured, we efficiently process every transaction through the CoP PayUK Network.

Seamless delivery

Navigating the intricacies of implementing a CoP solution might seem daunting. However, with a seasoned ally like obconnect by your side, this task is simplified. Our expertise doesn’t just provide you with a robust banking architecture but also offers unmatched integration capabilities. Our approach prioritises an API-first strategy, ensuring the solution is scalable, resilient, and perpetually operational — eliminating the need for scheduled downtimes.

Why Choose obconnect

Designed as an FCA-regulated Open Banking platform, obconnect delivers unparalleled CoP and Open Banking solutions. Unlike mere tech adaptations, our origin stems from the core of Open Banking.

We pride ourselves as the only global entity offering a full suite of Open Banking software, including CoP. This enables a flawless, secure, and efficient integration that’s both cost-effective and swift.

Our comprehensive solutions are tailored to cater to both traditional financial institutions and modern fintech firms. 

With obconnect, transitioning between Open Banking compliance and CoP becomes seamless, ensuring you’re equipped with technology that embodies the full spectrum of Open Banking capabilities.

Frequently asked questions – FAQ

Confirmation of Payee is a security measure implemented by financial institutions to ensure the accuracy and authenticity of payment transactions. The Confirmation of Payee service is designed to verify the recipient’s name against the account details provided during a transaction, helping to reduce the risk of misdirected payments due to incorrect or fraudulent information. This service acts as a crucial safeguard in the digital payment ecosystem, enhancing the security and reliability of financial transactions.

The Confirmation of Payee service works by cross-verifying the name of the payee entered by the payer with the name registered on the account held by the financial institution. When you initiate a payment, the service checks the recipient’s details and provides feedback on the match. This process ensures that the payment is being directed to the intended account, thereby minimising errors and preventing potential fraud.

The primary benefits of the Confirmation of Payee service include enhanced payment security, reduced risk of fraud, and prevention of accidental misdirected payments. By ensuring that payment details are accurate and correspond to the intended recipient, the service provides peace of mind to both senders and receivers of payments. Additionally, Confirmation of Payee helps in building trust in online transactions, making digital payments safer and more reliable for users.

The Confirmation of Payee service is typically applied to a wide range of digital payment types, including bank transfers, standing orders, and any electronic payment that requires the entry of account details for the transaction. This service is integral to ensuring the integrity of these transactions, offering an additional layer of security across various payment platforms and systems.