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Modulr glossary

Confirmation of Payee (CoP)

Confirmation of Payee (CoP) is a name-checking service that ensures the recipient’s account details match the intended payee before a bank transfer is processed. It was introduced in the UK to reduce misdirected payments and is a key tool in preventing authorised push payment (APP) fraud. CoP is a pay.uk service, which enables account names to be checked to their corresponding account numbers and sort codes, giving users greater assurance that they’re sending payments to the account they intended to. All of Modulr’s accounts are safeguarded e-money accounts enabled with CoP, so that the account name can be checked by someone paying money into a Modulr account and automated CoP checks are possible for all pay-outs made from a Modulr account.

Applications

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

Banking and fintech:

Helps issuers and payment providers comply with Strong Customer Authentication (SCA) requirements.

Advantages

  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
  • Fraud prevention: Helps reduce chargebacks related to fraud.

Challenges

  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment
  • Implementation complexity: Requires integration with card schemes and issuer systems.

Related Terms

OTP Compliance Strong Customer Authentication PSD2
Item created by Modulr, Updated on
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