Bad news for UK Stealth?

[alikayani]

Name checks to begin on bank payments, full story on bbc news website.

The name of someone receiving a payment will be as important as their banking details for the first time from next summer, in an attempt to combat fraud.

Warning external link: http://www.bbc.co.uk/news/business-45900955

[phaz0rz]

This legislation was mentioned a few weeks ago and senior members from UK said it'll be easy to work around..

Good luck nonetheless.

[JamesNorth101]

Have to wait for it to come into effect.

There are many ways around it when it does though if it causes issues.

[donkeykong2012]

There are many reasons why the Banks have been hesitant to action this.

They want credit balances. As long as they perceive there is no risk to themselves, they do not care where the cash comes from.

My bet is the main focus will be money sent between Bank Accounts. In the article, my impression is that the new technology will apply to Online Banking.

"When setting up a new payment, or amending an existing one, banks will be able to check the name on the account of the person or organisation you are paying."

So if you want to transfer money from one Bank Account to another through Online Banking, the new security system would kick in identifying an incorrect payee.

All my PP's are Business Accounts, so funds are withdrawn to Bank Accounts in my name using the Paypal Business name.

Business deposits are made all the time in the real world, with or without Paypal.

You can bet the Banks will want complete discretion as to what is acceptable.

[agnostixxx]

Lets cross our fingers..)

[jimbo1001]

The article says in the event of a mis match the receiving bank will provide the name of the account holder.
Can't really see a way around this other than to start opening new stealth accounts now in my own name. Then the bank details will match up.
Even if the PayPal is a business account the bank will advise the name the bank account is in.

Any other suggestions?

[bojan1188]

This seems more like online banking.

Where does Paypal make their payments from? This seems UK to UK.

Oh and

On that pic it asks if you would like to proceed. This seems more if you pay then you will be protected with the money. If you pay someone and know it’s erong name then you won’t be protected.

[donkeykong2012]

Exactly what I said earlier.

Pretty sure this is new tech to protect customers sending money between bank accounts using online banking.

The amount of warning messages across various online banking websites suggests this.

[bojan1188]

When someone is setting up a new payment, if the name matches, there will be confirmation of this – which could be a green tick, for example.

If the name does not match, it is then up to the sender to decide whether or not to proceed with the payment – but the risks will have been made clear to them beforehand.

I can’t see Paypal using this because let’s be honest without stealths they would lose a lot of money.

[Play]

As donkeykong2012 mentioned earlier, a business PayPal with a business bank account will be an easy workaround to this, should it affect current practices.

The bank will only see the business name on the PayPal when withdrawing. If that matches your bank, shouldn't be any issues.

Businesses have way too many transactions, so I very much doubt this would apply to businesses, but should it, the workaround seems easy enough.

[damac]

this surely wouldn't affect direct debit instructions though.

[JamesNorth101]

Not sure what that has to do with it?

DD don’t work on stealth accounts as it is due to the mismatched name. This doesn’t really change that

[Play]

Originally Posted by damac

this surely wouldn't affect direct debit instructions though.

You shouldn't need direct debits setup on stealth accounts anyway, as funding payments via your bank isn't advised.

Many use savers accounts so DD mandates don't go through anyway. Accounts work just fine.

[benjones54]

I have several UK Amazon Stealth accounts, do you think Amazon payments to UK Banks will be affected?

[Play]

Originally Posted by benjones54

I have several UK Amazon Stealth accounts, do you think Amazon payments to UK Banks will be affected?

I may be mistaken, so don't take my word for it. But from my understanding Amazon (at least used to) use a different withdrawal method to PayPal, which meant the bank never saw the name on the account. I'm not sure if this has changed. But this was the case a few years back.