EFTsure’s crowd sourced, “Know Your Payee” database of independently verified payee information enables unrivaled Best Practice capability to ensure protection of your company assets as well as providing up to date information on supplier and employee compliance data.
Our Vendor Relationship Management Solution simplifies Vendor onboarding and ongoing data management.
Our real-time Payment Protection alerts, and easy to use interface, deliver immediate fraud and error prevention benefits to your organisation.
Why KYP is important: Our founding principle of Know Your Payee is essential to protect your organisation and deliver efficiencies. Today’s digital world makes it difficult to ensure the identity of those who we are communicating with and receiving information from is correct. We make it easy to collect, maintain and protect payee information and ensure it relates to those who it is intended.
The majority of business payments today are made via Electronic Funds Transfer.
Prior to the release of an electronic payment Chief Financial Officers or authorising officers review payments by checking the Payee Name on the bank screen or payment report. This review is flawed because Banks don't match Payee Names with Account Numbers. Banks process payments by reference to BSB and Account Numbers only. Therefore there is no certainty that the Payee Name that you see on the screen will be the actual recipient of the payment.
The implication of this is that in spite of seeing the correct name the payment may be going to the wrong account.
"Important: You must enter the correct BSB and account number of the intended payee. In processing payments, the bank does not verify that account name matches the provided account number. If you enter an incorrect BSB and/or account number, your funds may be paid to an unintended recipient and it may not be possible to recover your funds from that recipient."
The banks are therefore protected but you aren't! This exposes you, your company, your directors and shareholders to financial loss and reputational damage.
As a Finance Officer or business owner you have a responsibility to protect your company's funds by implementing systems and procedures to ensure a sound internal control environment exists. You are ultimately responsible for the flow of funds out of the company and the authenticity of payments made to suppliers, employees and other payees.
Vendor Master File management is typically an area that is susceptible to internal control weakness due to the volume of suppliers, new suppliers, inactive suppliers, continuous changes to supplier details, requirements for workflow ease, resource limitation on segregation of duties, deficiencies in password management, collusion and the fact that payment files (known as ABA files) are editable once created which means internal control processes can be bypassed exposing businesses to error and fraud through changes to ABA files prior to uploading into the bank.
This weakness is already being exploited. See our News Room for some recently publicised incidents.
Serious risks of fraud and error exist at the point of payment, when your organisation instructs its bank to make payments to vendors and individuals. It is common for an ABA file to be created and uploaded to its online bank for payment. An editable ABA text file utilises bank account information from Vendor and Employee data files and if this information is inaccurate, or has been tampered with, then losses can occur.
As Banks Don’t Match Payee names to account names it may look like you are paying a correct supplier but the account number may have been altered or is incorrect, so you end up paying somebody else.
Best Practice dictates that individuals who authorise payments are generally not those who initially decide who is being paid and how much, creating a separation of duties and responsibilities. The challenge for the authorising person is to identify potential errors at the point of payment. Most authorisers rely on a visual check of payee information prior to authorsing a payment – “do I recognise the payee name? Does the amount look normal? And is the frequency normal?” It is relatively easy to identify an unfamiliar payee but very difficult to identify if the associated bank account is correct. The larger the number of payees the greater the risk.
As part of our procedures we verify the integrity of your Vendor Master File (VMF) as this is the source file where your banking details are recorded and consequent electronic payments derived. Thereafter, EFTsure's banking software extension analyses payment details just prior to release of funds thereby continually checking the authenticity of payments and acting as gatekeeper for an organisation's electronic payments.
EFTsure's™ cost effective, independent third-party service is able to provide the highest level of verification and provide Finance Officers with peace of mind that the Payee Name that they see on their banking screen will be the actual recipient of the payment.
Ensuring accuracy of payee information is crucial to achieving a best practice information management solution. If your Payee information is inaccurate, payments might go to the wrong payee.
The more information you collect on your payees the greater the benefits. This information is used for vendor and employee compliance to ensure your external relationships continuously meet your standards and legal obligations to protect your organisation's reputation.
Our solutions provide easy access and control over your Payee data offering real-time alerts and management reports. Protecting your Payee data from unauthorised changes ensures your organisation is not a victim of malicious attack.