Key messages and common questions for Confirmation of Payee

What is VerifyBiz and why do we need it?

The New Zealand banking industry launched a new Confirmation of Payee service in 2024.​ The service provides New Zealanders with greater confidence when making payments.

It means Users can check if account names and account numbers match before a payment is made. This reduces the risk of making a mistake and can help to avoid scams.​

Now, this service is also available outside of your banking apps as VerifyBiz. It can be used by businesses, banks and government agencies at any stage of a process where checking of account details is pertinent.

How does it work?

The service is accessed when a User, within <your company name>’s system:

• Creates a new, or,
• Edits an existing account name and account number.

The service provides a check to compare the name a customer enters against the actual name of that account, and provide a response of:​

• ‘Match’, ​
• ‘Partial match’, ​
• ‘Not a match’, ​
• ‘Account does not exist’,​
• ‘Can’t check payee details’, or, ‘Can’t check payee details right now’.​

The service only applies to domestic payments made to New Zealand-based accounts.

What do we do after we get a result?

(This is up to your workplace to decide the next steps. They will be determined by your policies, procedures and risk appetite, as well as the type of result issued, for example:

• Store the information and continue with the customer / staff journey flow
• Request the User to check the account details and try again until a ‘Match’ result is realised.
• Exit out of the flow.)

Important to note, prior to any payments being made

• Users should be wary if they’re told to ignore a ‘no match’ response and even if there’s a ‘match’ or ‘partial match’ response, it’s recommended users carefully check who they’re paying and why.
• If the account details are incorrect or turn out to be a scam, the payment may not be recoverable.
• Match result notifications are simply a comparison of two sets of data at a moment in time; they shouldn’t be held and used at a future date to provide confidence of a Match result.

How do I find correct account details?

If Users are unsure of the account holders name or account number, they’re advised to contact the person or business directly to get the correct details.

They should ask for the account holder name and number registered to the bank account. For businesses, this may or may not be the same name as their trading name.

What happens to my data during a Confirmation of Payee check?

To perform the Confirmation of Payee check, only account holder names and account numbers are collected and processed to perform the matching service. The service uses data encryption to perform the match and provide match notifications, without storing any personal information.

This service is built to comply with the Privacy Act 2020 and follows good security practices.

Checking joint accounts

If it is a joint account, a User will only need to provide one of the names registered to the account. The order that a name appears on a joint account will not affect the matching response.

Checking business accounts

• Sometimes, a business might have a different trading name to its account name. Use the correct name and number registered to the businesses bank account to get a ‘Match’ result.
• The service will not provide a check on businesses registered as a Bill Payee with banks - for example large organisations such as Councils, Government agencies, water and power companies etc. These businesses account details are verified through a separate process and stored with a bank - allowing their customers to pay them easily with provision for references through online or mobile banking.

What are the limitations of the service?

• The services will not provide a check on payments to overseas  accounts
• The service will not provide a check on businesses registered as a Bill payee with banks.
• The service won't always identify scams – scams are becoming increasingly sophisticated and scammers can manipulate people and systems to their advantage.

Performing a check

What do I need to do when I perform a check?

Users need to enter the details below into the fields provided: ​

• Account holder name – Where before customers may have entered initials or a nickname, they now need to use the exact name registered to the account.​
• Account number – This is the account number associated to the account name, provided by the account holder.​
• Reference – Some payments require a reference to identify who the payment is from – the account holder will ask you to provide this, if it’s necessary.​ This is not part of the Confirmation of Payee check.

After entering the account holder name and account number, the Confirmation of Payee service will check the account holder name entered against the actual name of the bank account being paid into. Depending on the outcome of the check, customers will receive one of these six notifications​.

Match

The name and account number match.

This does not always ensure a safe transaction - aways be alert to scams and only continue with the payment if you know and trust this account holder.

Partial match

The name you’ve entered is not an exact match with this account number.   You may have used a shortened name or made a small typo.

To get a Match result, update with the correct account name or continue only if you know and trust this account holder.

Not a match

The account name and account number don’t match. 

If you use this account to make or receive a payment the account could be wrong.​

Before continuing it’s a good idea to:​

• Verify the identity of the person or business you are setting up.
• Check you have used the correct account name.​
• Double-check the account number you’ve entered.​
• Pause and consider whether you trust this account holder.

Account type can’t be checked

We’re unable to check account details. Double-check you’ve entered the correct account number or contact the account holder to get the right account details. ​

Continue if you know the account details are correct and you trust this account holder.

Can’t check payee details​

We can’t check this name and account number because this payee’s account provider doesn’t provide a matching service.

 Continue only if you know and trust this account holder.​

Can’t check payee details right now

A temporary technical issue means we can’t check this name and account number right now.​

Continue only if you know and trust this account holder or try again later.