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David Godfrey

David Godfrey

Principal Consultant at ACI Worldwide
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PSA: Insist On Receipt When You Pay By NEFT And FPS

  In the case of Faster Payments in the UK, posting to the accounts is generally near-real time (in practice, if you bank with any of the banks who are direct participants in the scheme), and in any event should be within two hours. From a customer perspective, I have always found I have real-time visibility via online banking of the success or failure of the payment. You're correct to say this isn't totally uniform and to some extent the way this is presented back to the customer will vary from bank to bank, depending on their operational procedure and capability of their online channels, etc. The UK still suffers from the same issue however that payments are made against account number and sort code...whilst a beneficiary name has to be provided when initiating a payment, it is not validated. I could put "Micky Mouse" in the beneficiary name and the payment will succeed even if the real beneficiary is "Donald Duck". In my experience, very few bank customers in the UK know this, and assume they have some protection in the way that they have provided the beneficiary name. This has opened up quite a fraud vector. The traditional defence has been that account number and sort code are modulus checked against each other, to prevent fat fingered customers entering the wrong account number or sort code, but this isn't foolproof. There have been ongoing discussions and recommendations for some time to implement a confirmation of payee capability which would give payers more confidence that if they send a payment to "Micky Mouse", it really is going to "Micky Mouse", but progress has been very slow.