Banks requiring reasons for making a payment

Financial Chat
1

I’ve noticed that Santander requires a reason for making a Faster Payment, and has a list of possible reasons.

I wonder if any other bank has a longer list of payment reasons than Santander :thinking:

Transfer to own account
Returning an overpayment
Paying a friend
Paying family
Paying for a service
Buying goods
Paying for building work
Transfer to investment
Property or large purchase
Anything else

I’m a bit perplexed that Returning an overpayment is even on the list, let alone given more priority than paying friends and family

2

Is that not a typical scam approach, people over-paying you for something and then asking for you to refund the difference, before the original payment to you gets blocked/cancelled/discovered to be fraudulent/claimed back?

It might result in a specific alert being shown before the transaction can go ahead?

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3

Chase has a similar screen, it just shows a contextual message depending on which option you choose:

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4

Ah, that’s it. Probably also why Transfer to own account is at the top, too.

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5

Payment schemes will be requiring a Pupose Code (currently being slowly implemented) so this could be a simplified* front end version of that?

*I think there are 127 Purpose Codes in the finalised UK list, which is a subset of a globally agreed list.

These will be mandatory for CHAPS payments from November next year, and pay.uk (who run the Faster Payments infrastructure) are working with this too.

I’m working on implementing this for a client at the moment - there’s an interesting but dull document here - scroll down to the green button for Policy Statement.

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6

That’s interesting, it would be good to have some sort of official reason attached to a payment.

7

Maybe, but if they give 127 options for every payment, I’m sure I’m not the only one who’ll just click the first or second one.

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8

Looks like this question refers to adding a payee though (the Chase one at least) rather than making each payment. So probably not the same thing.

@Anarchist was the Santander one a question on the individual payment asked each time?

9

I can confirm it is.

10

Yep.