General
PayID: what is it and how does it work?
PayID is a fast and easy way to make and receive payments using easy-to-remember information. With PayID you can receive payments by providing your mobile number or email address instead of your BSB and account number.
In this article we take a look at what PayID is and answer some commonly asked questions about it, including how it works and how to set it up.
In this article:
- What is PayID?
- How does PayID work?
- How to set up PayID
- Is PayID instant?
- Does PayID replace BSB and account numbers?
- How many bank accounts can I link to PayID?
- What if I change the information connected to my PayID?
- Is PayID safe?
- PayID scams
What is PayID?
PayID lets you receive payments by providing your mobile number, email address or ABN instead of your BSB and account number. It’s fast and secure and saves you the trouble of having to look up or remember your banking details when you want to get paid.
You can also quickly send money to other people when they provide you with their PayID. For example, you can use PayID to do an on-the-spot transfer to a friend for your share of a bill or pay a business for work done on your house.
PayID is managed by your bank as an online banking option. Most people use their mobile banking app on their smartphone to make payments as it's most convenient, but you can also use internet banking on your computer. Most banks in Australia are now using PayID.
If you’re new to internet banking or mobile banking, start with our free short courses to find out how you can use your smartphone, tablet or computer to control your finances safely and securely. Here you’ll also find a practice area where you can hone key banking tasks such as transferring funds or paying a bill in our pretend bank, Squirrel Bank.
How does PayID work?
To pay someone using PayID you simply ask for their PayID, which can be their mobile number, email address or ABN if they’re a business. You don’t need to set up PayID to make payments.
If your bank uses PayID, it will appear as a payment option in your mobile banking app or internet banking, so you would select it instead of the traditional BSB and account number option. Once you enter the PayID (a mobile number for example), the name of the person or business appears automatically so you can see who you’re paying, and if it doesn’t match up, you can cancel the transaction.
To receive a payment, you need to activate PayID on your online banking app or website and link it to your bank account. When you want to receive a payment, you simply provide the person with the PayID that's linked to your account.
How to set up PayID
Once you’ve checked whether your bank offers PayID, you need to follow the steps provided in your mobile banking app or internet banking to set up your unique PayID.
Each bank has its own process, but in general you will need to:
- Log into your mobile banking app or internet banking.
- Look for the PayID option – it could be in your Profile or under Settings.
- Select an account to link to your PayID.
- Select your PayID type. For example, your mobile phone number or email address.
- Select a PayID name to help people know who they’re paying.
Visit the PayID website to search for your bank’s instructions on how you can activate and pay with PayID. Or visit your bank’s website directly and search for PayID. Here we’ve listed the big four banks’ guides on PayID:
Is PayID instant?
Transfers using PayID should happen almost instantly, most in under a minute if you have used the correct PayID, even between different banks and on weekends and public holidays. In some instances, there may be additional security checks by your bank so it’s best to contact them or visit their website for more information.
Does PayID replace BSB and account numbers?
No, it’s not compulsory to switch over to PayID. PayID is a quick and easy way to make and receive payments, however if you’re more comfortable providing your BSB and account number to receive payments, you can continue to do so.
How many bank accounts can I link to PayID?
Your PayID can only be linked to one account at a time. If you would like to use PayID across several bank accounts, you’ll need to create separate PayIDs for each account.
What if I change the information connected to my PayID?
If the phone number or email address linked to your account changes, you need to take action immediately. You may be able to update your details in your mobile banking app or internet banking, or you may need to close the PayID and set up a new one to link to your new email address or phone number. It’s best to check with your bank to see what their process is.
Is PayID safe?
Yes, your money is protected by your bank’s fraud detection processes. There’s also an extra level of security with making payments to a PayID since the name of the person you’re transferring money to appears before you confirm the transaction. This helps to stop money being sent to the wrong person or a scammer. If the name displayed isn’t what you're expecting, you can stop the payment.
PayID scams
PayID is a safe way to send and receive money, however, there have been a number of reports of PayID scams targeting people selling things on online marketplaces like Facebook Marketplace and Gumtree.
The best way to protect yourself against scams is to familiarise yourself with the tricks scammers use. Be on the lookout for buyers who offer to pay for an item using PayID but claim to have a problem with the transaction, especially when they offer to send a friend or relative to pick up the item on their behalf. Remember these tips:
- Never send money first to receive a payment via PayID.
- PayID is free so you will never be asked to pay for an upgrade to a business or premium account before you can receive any payments on PayID.
- PayID is managed by your bank, so you will never receive communications direct from PayID. Ignore any text messages, calls or emails claiming to be from PayID.
- Never rely on confirmation emails showing a buyer has overpaid you. The buyer will put pressure on you to repay the amount, however, the email is fake, and no money ever appears in your account.
To protect yourself against scams on online marketplaces, read our tips on how you can avoid Gumtree scams and stay safe on Facebook.
If you think you have been the victim of a scam, it’s important to act right away:
- Contact your bank immediately to ask them to stop any further transactions.
- Contact IDCARE, a free support service for people impacted by scams and identity theft, to build a response plan. Visit IDCARE or call 1800 595 160.
- Report the scam to Scamwatch to warn others.
- Being scammed can be emotionally and financially stressful so get support for yourself. Reach out to family or friends, or speak to Lifeline and Beyond Blue for a confidential chat.
Find out more about common online scams, how to identify them and what to do if you find yourself a victim of a scam.