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 the main account (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 the main account.

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, the payment account not displaying the actual payer’s name, but showing the main account'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 the main account (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 the main account handling the receipt, and the receiving account displaying the name of the main account (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