To learn more about Confirmation of Payee (CoP), download our white paper here.
The Confirmation of Payee (CoP) process, while appearing straightforward at a glance, is a culmination of multiple intertwined components working in tandem to ensure the security of transactions. Here, we dissect the primary constituents of the CoP mechanism:
Name Matching
At the heart of the CoP lies the Name Matching component. Its role is simple yet crucial – to juxtapose the name furnished by the payer with the name associated with the recipient’s bank account.
Upon initiating a transaction, the payer provides the recipient’s name, intending to confirm the transaction’s legitimacy. The CoP system then cross-references this provided name with the name registered on the recipient’s bank account.
The system instantaneously alerts the payer if it detects any discrepancies or mismatches. This can range from subtle variations in the spelling of names to entirely different names. By doing so, the payer is given the autonomy and the responsibility to recheck, thus acting as a first line of defence against potential misdirected payments or fraud.
Real-time Verification
With the ubiquity of instantaneous transactions in the digital age, the need for real-time verification has never been more pronounced.
CoP embraces this need by operating in real-time. From the moment the payer inputs the recipient’s details, the system swings into action. By liaising with the recipient’s bank, the system ascertains the validity of the provided name.
This swift response mechanism is pivotal. It bolsters the payer’s confidence in the transaction and fortifies the system’s resilience against fraudulent activities by nipping potential threats in the bud.
Confirmation Status
Feedback is integral to the CoP system. It is through feedback that the payer understands the state of their transaction and acts accordingly.
- Match: A ‘Match’ status signifies harmony between the inputted name and the recipient’s registered name. This is an affirmation for the payer to proceed with the transaction.
- Partial Match: This status arises when the inputted name closely resembles but does not exactly match the recipient’s registered name. It serves as an alert, urging the payer to either validate the name as there may be a spelling / small error or simply proceed. The Partial Match provides the correct name so the Payee is aware of the name at the recipient’s bank.
- No Match: This outright states that the provided name bears no resemblance to the recipient’s registered name. It is a stark warning for the payer to halt the transaction and recheck the provided details.
This triad of feedback ensures transparency and keeps the payer informed at all times. It educates them about potential risks and equips them to make informed decisions.
To learn more about Confirmation of Payee (CoP), download our white paper here.
