Confirmation of transfers before receiving money: the new trend in Europe

Bank Transfers in Portugal: Beneficiary Confirmation Required

Starting today, bank transfers will require prior confirmation from the beneficiary before the final order to transfer money is given.
This new procedure is being implemented in Portugal, setting the stage for its potential application in Italy and the rest of Europe.

This feature was already in place for transfers between Portuguese accounts at Multibanco ATMs.
At the ATM, the name of the person or company receiving the money is displayed, allowing the recipient to confirm in advance that the money is being sent to the correct beneficiary before confirming the transfer.

Expansion of the System

The Banco de Portugal, the Portuguese central bank, now demands that the same functionality be extended to all transfers through all channels offered by banks, such as online banking or the banking app that customers have on their smartphones.

This procedure will also be extended to direct debits to confirm that the debtor is the account holder to be debited.
This measure aims to reduce the risk of fraud, as highlighted in the 2023 Payment Systems Report published at the beginning of the month by the Banco de Portugal.

Reducing the Risk of Fraud

The implementation of this service is expected to significantly reduce the risk of fraud, minimizing the possibility of sending money to the wrong recipients.
From June 24 onwards (with a gradual implementation by banks until September), it will be possible to make transfers between Portuguese bank accounts (both normal and instant transfers) simply by entering the beneficiary’s mobile phone number.

In essence, what already happens on the MBWay network will now apply to all transfers between national accounts, whether carried out through online banking, the banking app, or at the counter.

Author: Hermes A.I.

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