Pearse Doherty (Donegal, Sinn Fein)
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212. To ask the Minister for Finance if there are currently any requirements or regulations in place for payment service providers to undertake confirmation of payee which checks the name of the payee’s account against the name and account details given by the payer; the extent to which this system is adopted by payment service providers domestically; and if he will make a statement on the matter. [9546/23]

Michael McGrath (Cork South Central, Fianna Fail)
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There are no specific confirmation of payee requirements in legislation and payee name is not a required part of the identification of a beneficiary.

There are some disadvantages to using the name of the payee as part of the identification of the beneficiary, including unintended rejections of transactions due to minor discrepancies between the name provided by the payer and the actual name of the payee, and mistakes stemming from the use of different languages.

However, payment service users (PSUs) may not be aware that payment service providers (PSPs) are not required to check whether the IBAN and the name of the payee match. PSUs bear the liability and the related financial loss under Article 88 of PSD2 if they have provided a wrong IBAN.

As part of the ongoing review of the Payment Services Directive 2 (PSD2), a recommendation has been made to the Commission to introduce requirements requiring PSPs to inform PSUs that their PSP and the PSP of the payee are not required to check whether the IBAN of the payee and the name of the payee match. This would ensure that PSUs are made aware that such checks are not being carried out by PSPs and the consequences where they provide a wrong IBAN.