Named PoBo v.s. Non-Named PoBo; Named CoBo v.s. Non-Named CoBo

1. Named PoBo (Named Pay on Behalf of)

• Definition: The owner of the payment account matches the name of the actual payer, but the payment is executed by a third party (e.g., a payment institution or financial service provider).
• Characteristics:
  • The payer’s identity is clear and displayed in the payment transaction.
  • Suitable for corporate or institutional fund management, such as a company paying suppliers through a financial agent, with the payment account still reflecting the company’s name.
• Use Cases:
  • Multinational companies paying expenses for subsidiaries (the account still shows the subsidiary’s name).
  • Payments completed via the company’s own payment account, but executed through a third-party channel.

2. Non-Named PoBo (Non-Named Pay on Behalf of)

• Definition: The owner of the payment account does not match the name of the actual payer, with a third-party payment institution making the payment, and the payment account not displaying the actual payer’s name.
• Characteristics:
  • The account name displayed in the payment transaction is not the final payer but rather the payment institution or intermediary account.
  • Suitable for scenarios where payment service providers make payments on behalf of multiple clients.
• Use Cases:
  • E-wallets or payment institutions using their own accounts to pay suppliers or employee salaries on behalf of users.
  • E-commerce platforms making payments for multiple merchants, with the payer displayed as the platform’s name.

3. Named CoBo (Named Collect on Behalf of)

• Definition: The owner of the receiving account matches the name of the actual recipient, but the collection is handled by a third party (e.g., a payment institution or financial service provider).
• Characteristics:
  • The recipient’s identity is clear, and funds are ultimately credited to the named account.
  • Suitable for corporate or institutional fund consolidation, such as a parent company collecting funds on behalf of a subsidiary.
• Use Cases:
  • Subsidiaries receiving payments through the parent company’s account, with funds ultimately belonging to the subsidiary.
  • E-commerce platforms collecting payments for merchants, with funds ultimately settled to the merchants’ own accounts.

4. Non-Named CoBo (Non-Named Collect on Behalf of)

• Definition: The owner of the receiving account does not match the name of the actual recipient, with a third-party collection institution handling the receipt, and the receiving account displaying the name of the payment platform or intermediary rather than the final recipient.
• Characteristics:
  • The receiving account’s name differs from the final recipient of the funds.
  • Funds may pass through the payment institution before being settled to the final recipient.
• Use Cases:
  • E-commerce platforms uniformly collecting payments from consumers, then settling funds to individual merchants (consumers see the platform as the recipient, not the specific merchant).
  • Agents collecting payments on behalf of suppliers, then distributing funds to the suppliers.

Summary Comparison