Overview

To prevent misdirected or fraudulent payouts, We have introduced Payout Beneficiary Verification using the Confirmation of Payee (CoP) framework. This ensures that the account number, branch code, and account holder name provided during a payout match the records held by the recipient’s financial institution.

When a user initiates a payout, the Finmo’s system performs a real-time CoP check and returns one of five match outcomes:

Match Result	Meaning	Payout Creation Status	Bulk Payout Creation Status
Match	Entered name exactly matches the account holder’s name	✅ Successful – Payout is created	✅ Successful – Payout is created
Close Match	Entered name is similar, but not an exact match	✅ Successful – Payout is created	✅ Successful – Payout is created
No Match	Entered name does not match the account holder’s name	❌ Failed – Requires user review	❌ Failed (User Retry Allowed) – Payout creation fails initially; user can retry with the same details or after acknowledging the mismatch and the payout will be created successfully
Unable to Verify	System unable to confirm account details (e.g., technical issue, opt-out, account details not found)	❌ Requires user review	✅ Successful - Payout is created
Account Closed	Account is no longer active	❌ Failed (Hard Stop) – Payout is blocked and cannot be retried	❌ Failed (Hard Stop) – Payout is blocked and cannot be retried

Based on the outcome, contextual messages are displayed to help the user assess whether to proceed with the payout. For added safety, inactive beneficiary accounts are automatically blocked at both the dashboard and API levels to avoid failed transactions.

Data Visibility Rules:

For business accounts, the registered Account name is shown across all outcomes.
For individual accounts, the Account name is shown only in Match and Close Match outcomes