Confirmation of Payee (CoP) verifies the name on a recipient account matches the person or business funds are destined for. It’s efficient in preventing types of fraud like APP fraud. It’s currently in use in the UK: the EU is working on a similar regulation – the Validation of Payee (VoP) – to integrate in the more global DSP regulation.
However, CoP presents some limitations:
Trustpair offers a more comprehensive correlation check thanks to additional data points and validation methods (company ID, account in activity, international blacklists, etc.)
It also has access to the largest network of banking data sources on the market – where CoP focuses on the UK and VoP on the SEPA zone. If you’re a UK company with suppliers in Asia for example, Confirmation of Payee will be unable to confirm the payee’s identity.
On top of that, Trustpair intervenes throughout the entire Procure-to-Pay process and not only at the payment stage: we check vendor bank account ownership right from the vendor onboarding phase and throughout the supplier lifecycle. We also integrate in your existing TMS for a hassle-free payment process.
Calls, emails, and data searches: just like the Confirmation of Payee service, manual vendor account verifications handled by financial teams are insufficient to stop vendor fraud. Manual, time-consuming, and fallible, one vendor account verification takes over 30 minutes on average. With our fraud prevention software:
On top of P2P security, Trustpair increases team efficiency and collaboration. Manual checks of vendor banking data (by text message, email, phone calls, etc) are replaced with automated instant validation – results are instant for 90% of controls.
Our solution offers flexible integration capabilities and connects easily to your existing systems thanks to our API and a broad range of native integrations with leading Procurement Portals, ERP, or TMS (SAP, Coupa, JAGGAER, Ivalua, etc). It complies with the highest international security standards such as ISO 27001 and SOC-2. Our integrations wipe out vendor fraud risks and ensure:
Confidently validate vendor bank accounts globally and validate vendor legitimacy across 190 countries thanks to the largest banking data sources network.
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Confirmation of Payee (CoP) and Validation of Payee (VoP) are two distinct IBAN-Name matching schemes used to limit payment errors before a payment is processed.
Confirmation of Payee (CoP) is a fraud prevention system primarily used in the UK. It checks whether the name attached to a bank account matches the name provided by the person making a payment. This system helps prevent fraud by alerting the payer if the details do not match, thus allowing them to confirm the accuracy before proceeding.
Validation of Payee (VoP), on the other hand, will soon be in use in the SEPA zone and involves the same process as CoP: checking the name vs IBAN match of the payee.
The main difference lies in the territory it is in use: CoP was designed for the UK and works only there, while VoP will be enforced in the SEPA zone. Also, CoP is mandatory in a specific list of banks whereas VoP will be mandatory for all SEPA zone banks. Both methods provide a broader safeguard against various types of payment errors and fraud.
Introduced in 2020, Confirmation of Payee (CoP) was first made compulsory by the Payment Systems Regulator (PSR) for the UK’s six largest banking groups to use in online and mobile transactions. This requirement was subsequently expanded to include CHAPS payments (Clearing House Automated Payment System). The mandate has since broadened; as of June 2024, an additional 50 financial firms are required to adopt CoP.
By October 2024, all Payment Service Providers (PSPs) that handle Faster Payments and CHAPS, or that are setting up new Standing Orders, must comply with CoP standards. This extension of the regulation underscores the PSR’s commitment to enforce transaction security across a wider spectrum of financial services.
Confirmation of Payee (CoP) offers several key benefits that improve payment security and accuracy in financial operations:
Fraud Prevention: CoP helps prevent fraud by ensuring that the name of the account holder matches the name provided by the person making the payment. This reduces the risk of sending money to a fraudster impersonating someone else.
Error Reduction: It minimizes the risk of sending payments to the wrong account due to typographical errors in account details. If the details do not match, the system alerts the payer before the transaction proceeds.
Increased Confidence: For both businesses and consumers, CoP provides greater confidence in making payments, as they can be sure their funds are going to the intended recipient.
Enhanced Customer Protection: CoP protects customers from certain types of scams, such as invoice redirection fraud, where criminals attempt to divert payments to their own accounts.
Regulatory Compliance: For businesses, using CoP helps comply with stricter regulatory requirements aimed at improving the security of payment systems.
Confirmation of Payee (CoP) primarily protects against Authorized Push Payment (APP) fraud, where fraudsters deceive individuals or businesses into willingly making payments to accounts controlled by criminals. This method effectively verifies the recipient’s name against account details to ensure payments are sent to the correct party, thus mitigating the risks associated with misdirected payments and impersonation fraud.
Trustpair, however, extends beyond the protections offered by CoP, safeguarding businesses from a wider array of fraud types. This includes more sophisticated forms of vendor payment fraud, such as invoice fraud where fraudulent requests for payment are submitted by posing as legitimate vendors. Trustpair also protects against deep fake technology and business email compromise, which are often used to manipulate payment processes or change vendor banking details illicitly.
By automating bank account validation and leveraging a comprehensive database alongside advanced algorithms, Trustpair ensures the legitimacy of every transaction, offering a robust defense against both common and complex fraud threats.
"Trustpair gives us more reliability and peace of mind. The financial director is more serene when it comes to approving the transfer order."
"With Trustpair’s verification methodology, it's no longer just a consistency check but an exact confirmation of the validity of the third party: there is no longer any risk."
"With Trustpair, we are able to automatically and quickly monitor our third parties and ensure the security of that very data over the long term."
“I would definitely recommend Trustpair to finance departments. It makes adding and modifying beneficiaries more reliable, without resorting to manual processes that are cumbersome, time-consuming and fallible.”
“The control process is simplified with the Trustpair solution, the Finance Department is reassured and, above all, it no longer needs to waste time performing manual checks to verify a supplier's bank details.”
"Trustpair adapts very well to the specifics of our market and our way of working. Several features are developed as we work together. That's a real plus."
"Trustpair has become more than a reflex; it has become an obligation. The team no longer validates an IBAN unless Trustpair has confirmed it to us."
Thanks to Trustpair, we’ve made a significant shift in our security processes and filled the gaps we needed to fill. Trustpair has proved to be a committed and trustful partner and we’ve appreciated the support and transparency.
We’ve gone from manual and time-consuming fraud controls to automated bank account validation done directly in SAP. The workload has been drastically reduced and payment security is now guaranteed.
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