How Does PayID Work? Detailed Guide & Safe Payment Tips

Article by : Divya Gandotra Aug 7, 2024

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PayID is an extremely popular banking option established in February 2018 by the New Payments Platform Australia (NPPA). This corporation is a consortium of 13 leading Australian banks, such as the Reserve Bank of Australia, so PayID is aimed at Aussies and designed for different online transaction types.

Aussies use PayID to both send and receive funds. The service is linked to the user’s mobile number, email address, or ABN, so there is no need to connect and add traditional bank account details. This saves time and makes the payments more secure since there is no need to share sensitive details within a platform where customers pay.

The service is part of the New Payments Platform (NPP), which makes transactions secure and straightforward. However, users should stay vigilant since risks and scams associated with PayID transactions still exist. These may be phishing attacks and fraudulent payment requests, but basic knowledge of PayID safety will help you avoid these schemes and enjoy secure transactions.

This article will describe in detail how to PayID, what currencies to choose for such transactions, where to pay via this method, and much more. Keep on reading to learn how PayID works and get the most helpful tips!

What is PayID & How to Connect It to a Bank

Let’s start with a simple question: what is PayID? In a nutshell, it’s a banking option used by Aussies to send and receive real funds with the help of a unique identifier linked to a bank account. This can be a mobile number, email address, or Australian Business Number (ABN). This way, one of these details is enough to make a payment and charge funds from the bank account connected to the service. No need to spend lots of time, adding traditional bank account details like BSB.

The same is true for receiving funds. You can provide your PayID rather than bank account information to receive payments directly into your bank account. Besides the straightforward and fast process, this method stands out thanks to reducing the chance of errors of entering incorrect account details. The risk of fraud is also minimized since you don’t add your bank account details. Plus, it saves time since you provide your PayID rather than lots of details. Thus, PayID translates into convenience, speed, and security.

How Does PayID Work? Helpful Guide

Conveniently, customers can use PayID to both send and receive funds. In both cases, the process is secure, straightforward, and fast. Below, we’ll explain in detail how to process such transactions and what customers should consider.

Sending Money with PayID

When you want to send real money through PayID, follow a few simple steps revealed by our experts while testing:

1. Find a recipient’s PayID: you need the virtual PayID code of the recipient, which will serve as an address to send money. This can be their phone number, email address, or ABN.
2. Initiate a payment: the next step requires logging into your banking app or online banking platform. Once it’s done, select PayID as an option you want to use for a further transaction.
3. Enter PayID and amount: insert the recipient’s PayID and select the amount within your balance you want to send.
4. Verify the recipient: when the app displays the recipient’s name associated with the PayID, verify that this is the correct person and continue.
5. Confirm and Send: finally, you can authorize the payment. In most cases, the money will be transferred within a few minutes.

How to Receive Money with PayID

Getting real money through PayID is just as simple, and here are the steps you can follow to do this:

1. Activate PayID: if you still don’t have your phone number, email address, or ABN linked to your bank account, do it through your bank’s app or online banking platform.
2. Provide PayID: send your PayID to the person who needs to send you money or insert it when you request a withdrawal from a site, such as an online casino.
3. Wait for a notification: when you’ve got a real money transfer through PayID, you get a notification from your bank. Then, the funds are displayed on your balance.

Is PayID Safe? Security Tools & Measures Explained

Real money transfers require attention and basic security knowledge. That’s why it’s essential to know: is PayID safe? According to the policy and safety tools applied by the method, PayID is a secure payment option designed to streamline and safeguard the process of sending and receiving payments. Of course, scammers may try to use the method’s popularity to get customers involved in fraudulent schemes, but when you know how to reveal and avoid them, you can enjoy a safe experience. These are the qualities which guarantee this safety.

Robust Security Measures

Real money transfers are protected through security protocols of Australian banks, including encryption and multifactor authentication. This way, your data is converted into a secure code to prevent unauthorized access. Thus, payments from PayID are as secure and and protected from cyber threats as traditional transfers within the chosen bank.

Verification Processes

Your bank verifies the recipient’s details when you want to send funds, so you have an opportunity to double-check whether the recipient’s details are correct. This helps prevent mistakes and ensures that funds are sent to the right person. If you see that the details don’t coincide, you can cancel the transaction with no extra fees or anything else.

Safe Practices Against Scams

PayID is secure and has a range of safety tools. Nevertheless, customers also need to follow basic security tips and measures to avoid scammers. First of all, make sure to verify the details when you send funds though PayID. Strong passwords, two-factor authentication, and monitoring your bank transactions are the best practices for online security.

Common PayID Scams: How to Protect Yourself

Unfortunately, scammers use any opportunity or brand, trying to steal essential details or money. That’s why PayID scams also exist, and it’s important to be aware of such schemes to avoid and report them. When you know what to do in such cases, don’t worry since the method itself is well-protected, while a few tips from us can help a lot.

How to Identify PayID Scams

When you are attentive to details and don’t believe in easy-money promises, scammers have no chance. These are the red flags to reveal and identify PayID scams:

• Unrealistic offers: when you come across investment opportunities or offers of high returns when you send funds to specified payment details, be careful since common tactics used by scammers are based on easy-money promises.
• Suspicious requests: when you get PayID requests you don’t await from unknown contacts, verify the identity through other means and contact customer support. Don’t send the money back when unknown people ask you for it.
• Urgency and pressure: scammers don’t want users to analyse anything and force them to quickly make a decision and send funds or agree to anything else. That’s why you should be vigilant from phrases like ‘act now’ or ‘limited time offer’. 

Common PayID Scams to Reveal and Avoid

Scammers may opt for different ways to steal essential credentials or real funds. That’s why it’s important to know how PayID scams work to avoid them:

• Investment scams: scammers send offers of super beneficial investment opportunities with sky-high potential rewards and little to no information about the product to invest into.
• Fake invoices: the other fraudulent scheme is based on fake invoices stating that scammers accidentally paid you a certain amount and require this money back, which means that you just send your money.
• Phishing emails: scammers may create email addresses similar to the brand’s official name and send emails which require extra verification or other things which force users to send their personal data.

Efficient Tips to Avoid PayID Scammers

When you follow a few simple safety rules and control your real money transfers, double-checking all requests, invoices, and other data, your experience will be secure and flawless. These are the most efficient tips to protect yourself from PayID scams:

• Verify the sender’s identity since PayID offers a convenient option to check the receiver’s data before the money is transferred.
• Don’t send money to unknown contacts, especially when it’s required for participation in certain giveaways or meeting other suspicious conditions.
• Stay away from unknown links when they are from unregulated sources since scammers may force you to install malware.
• Report suspicious activity and highlight the schemes you faced to help other people avoid scammers.

Is BPAY the Same as PayID?

If you’ve ever come across the BPAY service, you may ask this question: is BPAY same as PayID? Well, though the methods both facilitate payments for Aussies, BPAY is aimed at paying bills to local businesses and organizations, securing payments through a unique biller code, while PayID is aimed at person-to-person transactions. The methods are both safe and convenient yet have different areas of usage.

Australian Banks with PayID: Top-10

Since the method is reliable and popular among Aussies, banks with PayID are large and popular among locals. These are the most popular PayID banks in Australia:

• Commonwealth Bank
• Westpac
• ANZ
• NAB
• Bank of Queensland
• Bendigo Bank
• ING
• Suncorp Bank
• St.George Bank
• Bankwest

Since the banks partner with PayID, their apps have corresponding tools to make payments through this method and quickly connect the service to the bank account. You can check the app of your particular bank or ask its customer support to link PayID to the account.

Setting Up PayID: Guide & Things to Consider

In this block, we’ll explain how to set up PayID and what aspects to consider to start paying with this method. Our expert tested this payment option with different Australian banks, so the guide may vary depending on your financial institution, but in general, here comes the straightforward guide to set up PayID:

1. Log into your bank account or app and check whether it accepts PayID
2. Look for the option to set up PayID (usually, in the settings section)
3. Select the identifier you want to use (e.g., your email)
4. Link your account to PayID by following the system prompts
5. Verify your identity (e.g., enter a code sent to your phone)
6. Here you are to start using the method and make payments
7. In case of questions regarding PayID payments, you can contact your bank’s customer support

Conclusion: Benefits of PayID Payments

PayID is an advanced payment option which stands out from most competitors due to the direct connection with major Australian banks. This allows customers to link the service to their bank account though the bank’s app and enjoy quick real money transfers without the need of adding bank details manually. The method is secure and simple to use, but customers should be aware of common PayID scams to avoid them and keep personal and payment details secure to have a smooth payment experience with PayID.