How Confirmation of Payee (CoP) Protects Australian Businesses

What is Confirmation of Payee?

New to Australia, Confirmation of Payee (CoP) is a name-checking service that lets users verify who they are paying before a first-time domestic payment is transferred between financial institutions.

Designed with businesses in mind, Confirmation of Payee matches banking details against the recipient’s bank records to provide match outcomes and help minimise mistaken payments and exception handling when making payments.

When a customer enters a BSB and account number, CoP matches account details against the recipient’s bank records to provide match outcomes to business customers. The service helps to minimise errors, enhance payment accuracy and save businesses time and money. Its introduction is an important step to hinder the efforts of scammers and protect Australians’ money. 

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Why CoP is a Game-Changer Against Payment Fraud

In 2023, the Australian Financial Crimes Exchange (AFCX) recorded $1.5 billion in financial losses caused by scams. 

As fraudsters become more sophisticated, one way they are stealing money is through what’s known as ‘Payment Redirection’ scams. When this happens, they hack unsuspecting service providers and insert their own bank details into invoices. Clients take steps to settle an account and send the funds to the scammers’ bank account without realising.

These redirection scams can affect individuals as well; they may mistakenly believe they are transferring emergency funds to a family member or friend in need after receiving a message via email, SMS or WhatsApp. 

While it is possible to work with a financial provider to recover the funds in the event of a redirection scam, doing so can be time-consuming and frustrating. It can also be difficult to assign blame; is the provider responsible for being hacked, or does responsibility lie with the client because they failed to confirm the bank details?

Confirmation of Payee (CoP) solves this problem and the issue of transferring funds into the wrong account simply by mistake, by bringing a new layer of security to bank transfers.

The concept is simple but powerful.

How Does CoP Work

Confirmation of Payee provides confidence by confirming if the entered BSB, account number and account name matches the recipient bank’s records and provides a match outcome, and will report whether there is a match, a close match, no match or an error. 

The service can be used by businesses to check if banking details provided by employees, vendors, or customers match the recipient's bank records, helping payment accuracy while informing businesses of possible payment issues before the payment is attempted.

CoP is one of several measures introduced under Australia’s 2023 Scam-Safe Accord. This mandates a range of anti-fraud tools for all members of the Australian Banking Association and Customer Owned Banking Association, including biometric ID checks, payment delays for suspicious activity, and stronger scam alerts.

Australia’s banks have collectively invested over $100 million to roll out this technology, and you will soon start to notice CoP when you transfer funds to CommBank, NAB and ANZ accounts. The move brings Australia in line with similar protections already in place in the UK, where CoP has significantly reduced authorised push payment (APP) fraud.

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Benefits of Confirmation of Payee

Using CoP adds a small step to the payment process, but brings the following benefits:

• ‍Minimises errors: Confirmation of Payee reduces the likelihood of mistaken payments and errors.‍
• Promotes confidence: Businesses can now match banking details against bank records and get a match outcome before they make a payment.‍
• Efficiency: CoP delivers greater efficiency when making payments by reducing manual administration efforts for exception handling.‍
• Saves costs: Matching banking details before payments are made allows businesses to make payments with greater confidence, without needing to deposit and confirm small amounts into accounts.

How Monoova is Integrating CoP

As a leader in modern payment infrastructure, Monoova is actively building CoP functionality into its platform to provide clients with more secure and transparent payment flows. 

By enabling Confirmation of Payee within its API-driven environment, Monoova allows businesses to verify payee details in real time, before a transaction is processed.

For platforms that manage high volumes of first-time or one-off payments, this is a game-changer. Fintechs, payroll providers, lenders and marketplaces can use CoP to reduce fraud exposure, protect their users and prevent disputes without adding unnecessary friction to the user experience.

Monoova’s approach goes beyond simple compliance. By embedding CoP into its broader suite of intelligent payment tools, including PayTo and real-time account validation, Monoova is creating a safer and more resilient ecosystem for businesses that move money at scale.

As adoption of CoP increases across the industry, Monoova clients will be among the first to benefit from this added layer of security, without the complexity of building it from scratch. It’s another example of Monoova’s commitment to smarter, safer payments that give businesses the tools to grow with confidence.

Make money move (to the right places)

With Confirmation of Payee now part of the Australian payments landscape, Monoova is making it easier for businesses to move money with certainty. 

Whether you're onboarding new customers, disbursing funds or handling sensitive financial data, CoP adds a critical layer of trust to every transaction. By integrating this feature into your payment flows through Monoova, you’re building a better, safer experience for everyone who relies on your platform.

Protect your business from fraud and errors with Confirmation of Payee. Monoova’s CoP integration delivers smarter, safer payments. Talk to our team today.

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FAQs on CoP and Payment Fraud Prevention

Q: What is Confirmation of Payee?
A: CoP is a name-checking service that verifies account details before a payment is processed.

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Q: Why is CoP important for businesses?
A: It prevents fraud and misdirected payments, saving costs and reducing disputes.

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Q: How does CoP work in Australia?
A: It matches the entered account name, BSB, and number with the recipient bank’s records and provides a match outcome.

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Q: Is CoP mandatory?
‍A: Under the Scam-Safe Accord, banks must implement CoP and other fraud-prevention tools.

Q: How does Monoova support CoP?
A: Monoova integrates CoP into its payment APIs, helping businesses add fraud protection at scale.

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