Bank transfer rules change today for anyone sending money to friends, family or businesses

Bank transfer rules change today for anyone sending money to friends, family or businesses

As of today, bank transfer rules are changing for millions of banking customers. The changes have been brought in as part of a new law, which has been instated in the hopes of helping protect banking customers up and down the UK. According to the Mirror, six of the UK's major banks, including Barclays and HSBC, have introduced new security checks for all customers who transfer cash to friends, family, businesses and other payees. The new system, known as 'confirmation of payee', was first introduced in October 2018 and becomes law on Tuesday, June 30. It's part of efforts to clamp down on fraud which costs the UK economy more than £130billion a year. To make a transfer, you usually have to submit the recipient's account number and sort code. You can also send over their name, though in the past, banks haven't been legally obliged to verify this. This loophole meant fraudsters were able pose as other people to trick customers into sending money to other accounts. 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. The June rules will apply to faster payments and CHAPS. Bacs payments, which ...
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