Confirmation of Payee: a simple check that protects loan payouts and repayments

For most of New Zealand’s banking history, the account name you typed when paying someone was essentially decorative. Banks routed payments by account number alone. Type the wrong number — or be tricked into typing a fraudster’s — and the money went there, regardless of the name. Confirmation of Payee changed that. For anyone moving loan money, it is one of the most useful free checks available.

What is Confirmation of Payee?

Confirmation of Payee (often shortened to CoP) is a service that checks whether the name you enter for a payee matches the name on the account number you entered, before you send the payment. New Zealand banks began rolling it out in November 2024, with full implementation across major banks’ personal online channels expected by Easter 2025. Banks took a phased approach because of the size and complexity of their payment systems.

The participating banks named at launch were ANZ, ASB, BNZ, Westpac, Kiwibank, Bank of China, CCB, The Co-operative Bank, Heartland Bank, ICBC, Rabobank, SBS Bank and TSB.

What do the results mean?

Result	What it means	What to do
Match	Name and account number align	Proceed, if everything else about the payment is expected
Partial match	Close, but not exact	Check the correct name with the payee on a known number
No match	Name and number do not align	Stop. Call the payee on a number you already hold
Unable to check	The receiving bank is not participating, or the check is unavailable	Treat with extra care, especially for large or new payees

A partial match is common for businesses, because people often type a trading name (“Kowhai Plumbing”) when the account is in the company’s legal name (“Kowhai Plumbing Services Limited”). That is not necessarily a problem, but it is worth a quick confirmation, especially for a new payee.

Why does this matter for a business loan?

Loans involve some of the largest payments a small business makes, often to payees you have not paid before. The main moments:

When loan funds pay a supplier. You borrow to buy equipment, vehicles or stock, and pay the supplier from the loan. A fraudster who has compromised the supplier’s email may send “updated” bank details just before you pay. CoP gives you a chance to catch it.

When settlement pays third parties. For property-secured loans, lawyers often pay creditors such as Inland Revenue or an existing lender directly. Your role is to make sure any details you supply are correct; see online settlement.

When setting up repayments. If you pay your lender by transfer rather than direct debit, the payee details you set up will be used for months. Check them once, properly.

When anyone says the account has changed. A message saying a lender’s, supplier’s or customer’s bank account has changed is the classic opening of payment-redirection fraud. CoP is one check; a phone call to a known number is the other. Read payment-redirection fraud.

Still planning the loan? Start the enquiry and note who will need paying — it helps us plan safe payouts from the start.

How should a business build CoP into its payment routine?

A simple routine for every new or changed payee:

1. Get the details through a trusted channel — ideally from an invoice you expected, a signed contract or a phone call you initiated.
2. Enter the exact legal account name where you know it.
3. Read the CoP result. Do not click past it.
4. For partial match, no match or unable to check: call the payee on a number from your own records or their official website, not from the message containing the bank details.
5. For large first payments: consider a small test payment, then confirm receipt by phone before sending the balance.
6. Record what you checked — date, who you spoke to, what was confirmed.

The National Cyber Security Centre’s Own Your Online tips for businesses include the same principle: verify unusual payment requests and changes through a separate channel.

What CoP cannot do

The New Zealand Bankers’ Association has cautioned that Confirmation of Payee will not fully protect people from scams. Understanding its limits helps you use it well:

• A fraudster can open an account in a believable name. If a criminal opens an account called “Kowhai Plumbing Services” and sends you that name with their number, CoP may show a match. The check confirms name and number agree; it does not confirm the payee is who you think.
• It does not stop you being persuaded. Social engineering — “the auditor needs this paid today” — can lead people to pay despite a warning.
• Not every channel or bank participates equally. Some payments may return “unable to check”.
• It does not protect your email. If your mailbox is compromised, fraudsters can see exactly when payments are due. Two-factor authentication matters as much as CoP.

What about receiving a loan payout?

When a lender pays loan funds to you, the lender is the one entering your details. You help by:

• providing your account name exactly as it appears on the account;
• giving the details in the signed documents or through the lender’s secure process, not by plain email;
• telling the lender immediately, by phone, if anything about your account changes.

A lender that runs its own CoP check will see a mismatch if the name you supplied does not match the account, which can delay payout. Getting the name right first time keeps settlement smooth.

A worked example

Worked example (illustrative): a Rotorua café borrows $55,000 to replace its espresso machine and refrigeration. The equipment supplier emails an invoice; two days later, a second email “from accounts” says their bank has changed. The owner enters the new details: CoP returns “no match”. She calls the supplier on the number from their website. The supplier’s mailbox had been compromised; the original account was correct. The payment goes to the right place, and the supplier thanks her for the warning.

How does this fit with invoice finance?

Invoice finance adds another layer, because your customers may pay the finance provider, or you, depending on the structure. Fraudsters may target your customers with fake “new bank details” emails in your name. Tell customers in writing how genuine changes will be communicated, encourage them to use CoP and to call you on a known number. See online invoice finance.

The habit that matters most

Confirmation of Payee is a seatbelt, not an airbag. It works best alongside one habit: never act on changed bank details without a phone call to a number you already trust. Combine the two and most payment-redirection attempts fail. For the full picture of online loan threats, see online loan scams.

What should you tell your staff about Confirmation of Payee?

Anyone who makes payments for the business should know three things. First, never click past a “no match” or “partial match” result without checking. Second, the check is done by calling the payee on a number from your own records, not the number in the email or invoice that supplied the bank details. Third, urgency is a warning sign, not a reason to skip the check. Put those three rules on one page next to whoever runs your payment batches. If you use payroll or accounts-payable software that uploads batch payments to your bank, ask your bank how Confirmation of Payee applies to bulk files, because the experience may differ from paying one person at a time in the app.

Is there anything to do when you are the payee?

Yes. Make it easy for others to pay you safely. Use your exact legal account name on invoices, keep it consistent, and include a line telling customers you will never change bank details by email alone. If you do change banks, announce it by phone or in person as well as in writing, and expect customers to call to check. Their caution protects your money too.

Start your enquiry with a team that checks before it pays

Our enquiry takes around a minute and has no credit check attached. Your details stay with one team instead of being hawked to multiple lenders, and a real person becomes your known contact for every step, including payouts. Tell us accurately who will need paying from the loan, so payee details can be verified early. See what you could qualify for.