New Zealand banks today start rolling out confirmation of payee (CoP) technology aimed at protecting Kiwis from payment mistakes and scams when online banking.

The service is designed for domestic account-to-account payments, providing bank customers with an extra level of reassurance when making payments.

If you’re unsure what CoP is all about, the Herald has put together a few key questions:

How does it work?

Customers will now need to provide both the account name and number of the recipient, instead of initials or nicknames.

In other words, John Smith is acceptable while Mr J S Smith is not.

It’s also important to provide your correct account owner name and number to people making a payment to you.

The system will then check if the entered name matches the recipient’s real-time bank records, with a pop-up indicating whether there is a ‘match’, ‘partial match’, or ‘no match’.

GetVerified, an organisation established by New Zealand banks to implement CoP and other anti-scam initiatives, says the new service will be noticeable in three scenarios:

• When paying someone new;
• When editing an existing payee;
• When making a one-off payment.

Why haven’t I got a match?

There are a few important reasons why the payment you are making might not be a match.

Firstly, it’s important to note that the CoP service is being slowly phased in, meaning not all customers will have access right away. Full availability is expected by Easter 2025.

This could result in someone receiving a ‘payee check unavailable’ note.

If you receive a ‘partial match’, it means the account owner name and account number aren’t an exact match. This will likely be due to a typo or use of initials instead of a full name.

Meanwhile, a ‘no match’ suggests the account owner name and account number don’t match. This could be because it has been entered wrong, or it might not be the account you mean to pay.

But either way, you won’t be prevented from making a payment.

Duncan Robertson, chief executive of GetVerified, emphasises that the final decision to proceed with the payment rests with the customer.

“One of the biggest advantages of CoP is that it provides a result – usually a ‘match’, ‘partial match’, or ‘no match’ – that prompts customers to pause and double-check,” Robertson said.

“A ‘partial match’ or ‘no match’ serves as a red flag to ensure customers verify the details and consider whether they trust the person they are paying.

“There are no blocks to making payments, regardless of the result. But we encourage everyone to take a moment and think carefully before proceeding.”

Which banks are participating?

All major banks – including ANZ, ASB, BNZ, Westpac, and Kiwibank – are participating in CoP.

They are also joined by TSB, SBS Bank, Heartland Bank, the Co-operative Bank, Rabobank, Bank of China, CCB and ICBC.

Why a phased rollout?

The New Zealand Banking Association says a phased delivery to customers will ensure proper testing and customer satisfaction.

“The technology build and integration of the new service differs across banks, so it’s unsurprising that each bank’s testing and delivery phase looks slightly different,” said association chief executive Roger Beaumont.

“It’s crucial that all banks gain assurance the system is working as it should, across their online and mobile banking platforms and services, before rolling it out broadly. This will ensure a smooth implementation particularly, in New Zealand, where so many people have more than one bank.”

Do I need to do anything?

No. It will be automatically available on your banking platform once your bank has launched it.

“Remember, banks will never ask for your username, password, or any codes sent to your phone,” Robertson said.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.