Six UK banks introduce brand new rule for money transfers

Those who use online banking to transfer cash to friends, family, businesses and other payees will need to know about the new rules that have come into force.

Six major banks, including Barclays and HSBC, have added a new “confirmation of payee” safety measure.

It will allow customers to check exactly who they are transferring money to as part of a huge crackdown on fraud.

The new system, known as “confirmation of payee” was first introduced in October 2018 and becomes law on Tuesday, June 30, reports The Mirror.

It means account holders face additional security checks.

To make a transfer, you usually have to submit the recipient’s account number and sort code.

But from June 30, you’ll be able to ask your bank to carry out a name check before sending out any money.

They’ll be able to check that the name on the account matches the name you’re sending money to – and if it doesn’t, they will notify you.

It means you can check who your cash is really going to, and stop the payment if necessary.

If you have entered the wrong name for the account holder you will be told the details do not match.

The June rules will apply to faster payments and CHAPS.

First Direct, Halifax, Lloyds, RBS (including NatWest), Nationwide and Santander will introduce it on June 30.

Importantly, you’ll only be able to request the safety check if both banks are on the scheme. It also won’t apply on international payments.

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