Confirmation of Payee is a name-checking service used before a payer sends money to a UK account. It compares the intended recipient's name and account details and returns a result that helps the payer identify errors or possible impersonation. The PSR's directions concern participation and coverage by the specified firms.

The service distinguishes a match, a close match, a mismatch and cases where a check cannot be completed. Those outcomes must be presented clearly enough to inform the payer's decision. The check is especially useful when new payee details are entered or changed, but does not validate the underlying purpose of a payment or the honesty of the account holder.

For providers, implementation includes reliable request and response handling, accurate account-name data, customer-facing warnings and management of exceptions. It supports fraud prevention alongside transaction monitoring and reimbursement rules; it is not a standalone guarantee that an authorised transfer will be recovered if a scam occurs.