Hi,
I’m using the app to make a bank transfer and one of the information I’m asked to provide is whether the recipient’s account is personal or business?
a) How can I know that?
b) Why should I care?
Besides, Monzo know what kind of account it is because when I chose ‘business’ it cried in red letters that my choice didn’t match the records. So what’s the point of asking me? Why not skip this step and remove this seemingly pointless entry on the bank transfer form?
It’s an anti fraud measure
If someone has emailed you pretending to be a business you’re expecting to pay, then if it tells you it’s the wrong name and a personal account it should raise some red flags with you
If you ignore it and send the money anyway then the liability is on you
Well British Gas or HMRC don’t use personal accounts. I mean it is something you should know.
That is a more interesting question. Possible reasons could be different database lookups, or if you are being scammed into paying a fake company which is actually just a person it could be a useful warning. Just a couple off the top of my head.
How about that business down the road, should I know that too?
There’s a blog about it
All uk banks have to do this btw, it’s not just Monzo
Well you should know they’re a business if they’re a business down the road
Or ask them when they give you their bank details what name the account is in
Yes. Because it’s a business.
This really isn’t rocket science.
Well you already know they are a business… so yes. Honestly.
You would all be surprised then because the business I just received an invoice from is apparently not a business.
Also, if I send you a scam message with my bank account number pretending to be ‘HMRC’ then surely these two details won’t match. I can’t see how determining whether it is business or personal helps. Seems redundant for fraud detection purposes.
Then personally I would pause sending the money and reach out and ask them why the money is going to a personal account.
People can use similar email addresses and insert their own bank details in to payment requests so it’s worth a double check.
Your really over thinking this , you know if your sending to a business or not
From the random selection of articles I’ve seen on the web it appears that just because you are a business does not mean you have to have a business account contrary to what the posters above implied.
You totally don’t have to have a business account but I would still double check it with them. “Do I have the details right because my bank says this”. The double check doesn’t hurt.
(My job involves supplier management and I sat through a corporate briefing by Lloyds bank last week about how often bank details get spoofed on invoices. It’s a whole industry now.)
It depends
Sole traders don’t with a lot of banks. But some insist on it.
But a business really should as it’s much easier from an accounting point of view
Move along, nothing to see here
Also if you’ve got issues, take it up with the FCA, pretty sure it’s what they told all banks they must do.
Why should I talk to FCA? I use Monzo’s app not FCA’s and this is a forum to discuss their products. Monzo implemented the requirement and in this instance the UX is pretty poor IMO. No explanation given how you determine which option to choose. And as demonstrated in this thread this appears to be a pretty confusing matter with people believing that if it’s a business they must be using a business bank account whereas the reality is that “it depends”. I think it could’ve been implemented in a better way but you are happy with the way it is done currently so obviously everyone must be.
All banks are having to use the name check system to me I treat personal as individuals and businesses as companies like apple HSBC etc. I don’t think it’s unclear you can both types using a personal or a business account if you are one. I am glad the FSA bought this in to help with fraud.
It’s not Monzo’s problem. Try the same thing with another bank - chances are you’ll see the same thing as that’s what the regulator (the FCA) tells them to do.
If a business is a sole trader then they could have either: a personal account or a business account.
If a business is limited company then they’ll need to have a business account.
You can probably tell which one it is by the account name given to you by the business. If it sounds like someone’s name, it’ll be personal and if it sounds like a business name, it’ll be a business account.
Maybe this is a useful measure, I don’t know it’s effectiveness so hard to tell, seems a little random. If Joe Doe gives you their bank account and tells you they are HMRC and you owe them money I think it’s obvious enough already that it’s a scam regardless of their account being personal or not.
Meanwhile I received a reply from the business that sent me an invoice and they are using a personal bank account.