New standards announced today & some changes which Monzo will need to implement. I was expecting Monzo to create a feature to enable users to have greater control over Direct Debits anyway but I expect the other changes are unexpected. Let’s see if Monzo’s one of the first to implement this
Two new safeguards to protect people when they pay online or via banking apps
The changes, announced by the payments industry, will allow consumers to double check they are paying the right person.
When money is taken from an account by a direct debit, consumers will also be asked to confirm the payment.
When a bank account holder makes a payment online, a message will come back from the bank, confirming the name of the person they are paying.
Only when they click “OK” will the payment go through.
When a company wants to take a regular payment from a customer’s account - for example gym monthly membership fees, or a mobile phone company charging for extra data used - the consumer will receive a message asking them to approve the payment.
The plans also involve the consolidation of three payment system operators:
- Bacs, which administers automatic payment methods such as direct debits
- Cheque and Credit Clearing Company
- Faster Payments Service, available 24 hours a day