Breaking Change (October 2024) Introducing Confirmation of Payee (CoP for GBP payments)

Starting this October, whenever your customers creates a GBP payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution., all Payment Service Providers using the UK Faster Payment System will need to perform a check on the payee's name to ensure it matches the account details based on the sort code and account number. This requirement aims to help prevent payments from being accidentally sent to the wrong account or maliciously misdirected. This process is known as Confirmation of PayeeConfirmation of Payee A service that automatically verifies bank account details when creating payment runs or outgoing wire transfers. For GBP payments, CoP checks return results showing Exact Match, Close Match, or No Match, including reason codes and additional information to help verify the payee details are correct. (CoP).

Effective:

• 28 October 2024 on Sandbox
• 29 October 2024 on Live

Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. and Payments API Endpoint Summary

CoP is only available for UK-domiciled accounts that use the UK domestic payment scheme of Faster Payments. To support CoP, we made significant changes to the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. API endpoints and the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. lifecycle. Below is a summary of these changes:

Create a Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. API endpoint updates

When a user creates a payment run in Faster Payments, they must specify the type of beneficiaryBeneficiary A trusted recipient for payments that includes both information about the business or individual as well as their bank account or instrument details. When using trusted beneficiaries, customers may be allowed to skip Strong Customer Authentication (SCA) when executing Outgoing Wire Transfer or Send transactions, reducing the number of approval steps required. account, which can be either PERSONAL or BUSINESS. The state of the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. will transition to an interim state of QUEUED instead of PENDING_CONFIRMATION.

In this state, a CoP check is performed on the payee details for each payment in the run. The HTTP 200 response response of this endpoint will return a new object called validationsOutcomes, containing the status of the matching performed (e.g. EXACT_MATCH, CLOSE_MATCH or NO_MATCH) and the reasonCode. A list of the reason codes can be found here.

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The CoP results will also be sent through the payment run update and payment update webhook events.

Once the CoP results are returned, the payment runsPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. state will transition to PENDING_CONFIRMATION.

Payments Run states updates

To accommodate the changes for CoP, we have made updates to the states within the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. process:

• Removing theVERIFYING_REQUIREMENTS and CREATED states.
• We are introducing the QUEUED state: This reflects the asynchronous nature of the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. creation is an asynchronous process. This status indicates that the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. is in the process of being validated. One of the validation steps being the CoP checks for every payment line within the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution..

Payments states updates

To add more visibility and to align the payment statuses with the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution., we have made the below changes:

• Removing the SUBMITTED and CREATED state from the Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution..
• Adding:
  • QUEUED
  • PENDING_CONFIRMATION
  • EXECUTING
  • AWAITING_FUNDS

Get payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. endpoints

The get a payment run and get payment runs endpoints have been updated to reflect the removal of old states and the addition of new ones. We have also included CoP results in a the new object validationOutcomes

New Update a Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. API endpoint

We have introduced a new API endpoint for updating a payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution., allowing users to modify the payee details of individual payments within the run. Based on the CoP results, this functionality enables users to edit specific payments without needing to cancel and re-create the entire payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution..

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Updating a payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. can be done by a user with a Creator role and will help the user with a Controller role to approve the payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution..

More information about roles can be found here.

Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. Authorisation UI Component

The Payment Run Authorisation Component has been updated to display the CoP results next to each payment so that the user with a Controller role can further verify the payee details.

The payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. can be cancelled at any time if the CoP results do not meet the required criteria

Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. lifecycle

The payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. lifecycle has been updated accordingly to explain the new overview states:

Summary of Action required

Migrate your application to start handling:

1. The create a payment run endpoint now requires the type to be specified as either PERSONAL or BUSINESS when creating GBP payments.
2. The new updated states related to Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. statuses and the Payment RunPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. line statuses
3. Accept the update response with the CoP results (validationOutcomes)on the below:
   1. Webhook events:
      1. Payment Run Update
      2. Payment Update
   2. UI Components:
      1. Payment Run Auth Component
   3. API endpoints:
      1. POST/payment_runs
      2. GET/payment_runs
      3. GET/payment_runs/{payment_run_id}
4. Optionally use the Patch a payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. endpoint to edit Payee details based on CoP results

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This will help prevent any disruptions to your integration.

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More information, along with the YAML file of the changes, will be provided to you in the coming days.

If no action is taken

If no action is taken, your application wouldn't be able to handle the updated responses when creating a payment runPayment Run A list of payments created by Buyers to settle their outstanding financial obligations with their suppliers. Payment runs are typically managed by the accounts payable function within a business on a periodic basis and go through stages of creation, authorisation, funding, and execution. resulting to your users not being able confirm the run.