# AI tells an Australian user that PayID payments are irreversible like bank transfers, ignoring the NPP's Osko scam protection and reversal mechanisms

- **ID:** `banking/payid-irreversible-myth`
- **Domain:** banking
- **Category:** assertion_error
- **Error Code:** `NPP-PAYID-REVERSAL-001`
- **Verification:** ai_generated
- **Fix Rate:** 82%

## Root Cause

The New Payments Platform (NPP) in Australia supports PayID payments that are generally immediate and final, but the Osko service includes a 'Scam Protection' feature allowing banks to reverse payments within 24 hours if fraud is reported, and the ePayments Code mandates customer protection for unauthorized transactions.

## Version Compatibility

| Version | Status | Introduced | Deprecated |
|---------|--------|------------|------------|
| NPP v2.1 | active | — | — |
| Osko by BPAY 2024 | active | — | — |
| ePayments Code 2023 | active | — | — |

## Workarounds

1. **If a PayID payment was sent to the wrong person or due to fraud, contact your bank immediately within 24 hours to request a reversal under the NPP's Scam Protection policy. Example: 'Call your bank's fraud hotline (e.g., Commonwealth Bank: 13 2221) and provide the PayID reference number, recipient details, and transaction timestamp. The bank will initiate a PRR via the NPP.'** (85% success)
   ```
   If a PayID payment was sent to the wrong person or due to fraud, contact your bank immediately within 24 hours to request a reversal under the NPP's Scam Protection policy. Example: 'Call your bank's fraud hotline (e.g., Commonwealth Bank: 13 2221) and provide the PayID reference number, recipient details, and transaction timestamp. The bank will initiate a PRR via the NPP.'
   ```
2. **Use the 'Confirmation of Payee' (CoP) feature before sending a PayID payment to verify the recipient's name matches the account. Example: 'In your banking app, when entering a PayID, the app will display the recipient's registered name; if it doesn't match, do not proceed. This is mandatory for all NPP-connected banks since 2024.'** (95% success)
   ```
   Use the 'Confirmation of Payee' (CoP) feature before sending a PayID payment to verify the recipient's name matches the account. Example: 'In your banking app, when entering a PayID, the app will display the recipient's registered name; if it doesn't match, do not proceed. This is mandatory for all NPP-connected banks since 2024.'
   ```
3. **For high-value PayID payments (above $1,000), use a 'scheduled' or 'delayed' payment option if available, which allows cancellation before processing. Example: 'In ANZ's app, select 'Schedule Payment' instead of 'Send Now' for PayID; you can cancel the scheduled payment up to 1 hour before the scheduled time.'** (80% success)
   ```
   For high-value PayID payments (above $1,000), use a 'scheduled' or 'delayed' payment option if available, which allows cancellation before processing. Example: 'In ANZ's app, select 'Schedule Payment' instead of 'Send Now' for PayID; you can cancel the scheduled payment up to 1 hour before the scheduled time.'
   ```

## Dead Ends

- **Tell the user that PayID payments are final and cannot be reversed under any circumstances** — Since 2023, the Australian Banking Association's Scam-Safe Accord requires banks to implement a 'Confirmation of Payee' (CoP) check and a 24-hour reversal window for PayID payments flagged as fraudulent; customers can request a reversal via their bank's fraud team. (90% fail)
- **Advise the user to file a police report and wait for the recipient to voluntarily return the funds** — While a police report helps, banks have direct reversal capabilities through the NPP's 'Payment Reversal Request' (PRR) mechanism, which is faster and doesn't require recipient cooperation; waiting for voluntary return often results in permanent loss. (75% fail)
- **Claim that Osko payments are covered by chargeback rules like credit cards** — Osko/PayID payments are not subject to chargeback rules under Visa/Mastercard; they use the NPP's own dispute resolution process, which has different timelines (24 hours for reversal vs. 45 days for chargebacks). (95% fail)