In this article we explain what a confirmation-of-payee check is and how they work in Nook.
Nook's confirmation-of-payee check helps to give you confidence you have the correct bank details for the intended beneficiary by checking the name you have for that business of individual matches the name the receiving bank has for the owner of that bank account.
Confirmation-of-payee check outcomes
At the core of the confirmation-of-payee check is the validation process. Nook compares the payee name you have entered against the name associated with the bank account details provided. This comparison can result in:
- Full Match: The names match exactly, indicating the details are accurate.
- Partial Match: There's a slight discrepancy between the names, suggesting a need for closer review.
- No Match: The names do not match, which may signal incorrect details or a potential risk.
What triggers a confirmation-of-payee check?
- Suppliers
- When updating UK bank details for suppliers from either the Payments screen, or directly on the Supplier record in Contacts, you will see a confirmation-of-payee check carried out and what the match result is.
- Payroll
- When updating UK bank details for Employees, either on the employee record in the Employees tab in Payroll, or in the Payroll Run itself, you will see a confirmation-of-payee check carried out and what the match result is.
- When scheduling or paying a Payroll Run, you will also see a confirmation-of-payee check carried out across all employees with a flag for any 'Partial' or 'No' matches.
Operational Insights
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Informed decisions: While the confirmation-of-payee check is informative, allowing payments to continue even with Partial or No Match results, Nook advises extra diligence under these circumstances. This may involve additional verification steps to ensure the accuracy and authenticity of the recipient's details.
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Data sources: The confirmation-of-payee check pulls information from various data points, including direct entries on Supplier or Employee records in Nook, accounting and payroll software integrations, or payroll file uploads. This ensures comprehensive validation across all your payment channels.