UK-based PayPoint has added ‘Confirmation of Payer’ service, or ‘Payer Name Verification’, to its range of Open Banking solutions.
Businesses can use Confirmation of Payer to confirm in real-time that account information provided by a payer corresponds to the account number, sort code, and name registered with the bank.
The service can be used when setting up direct debits to make sure that the correct details have been inputted and, therefore, helps to prevent fraud and resulting indemnity claims.
“Our Confirmation of Payee service has been very successful and seen huge appetite among businesses looking to add further safeguards into their existing operations or replace less effective incumbent solutions,” Danny Vant, managing director of client services at PayPoint, said.
“Adding Confirmation of Payer to our product suite is the natural next step in continuing to build out this service to deliver a fully rounded, integrated offering to clients.”
Confirmation of Payer is delivered through a web portal or integrated via APIs.
“Despite many existing safeguards, a significant number of direct debit payments do not reach the intended recipient due to fraud or inaccuracies in the set-up information,” added Vant.
“These services greatly reduce that risk for businesses by checking payee details are correct and making fraud easier to detect.”
Pay.UK’s BAC’s annual statistics report 2022 revealed there were 4.7 billion direct debits processed in the UK last year.