Potential Settlement risk associated with Some ANZ Payments

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Date: October 2025

Background: Increase in Attempted Fraudulent Transactions

New Zealand banks are reporting a rise in attempted fraudulent transactions, often involving stolen customer login credentials obtained through phishing, phone scams, text scams, or other illegal means.

All banks apply anti-fraud measures before processing electronic transactions. If a transaction fails these checks, it is stopped before payment is accepted. In such cases, POLi will report the transaction status to the merchant as “Failed.”

Unique Risk with ANZ Transactions

Unlike other banks, ANZ may issue a receipt to POLi and debit the customer’s account, even if the transaction is later deemed fraudulent. In these cases:

  • The transaction is marked as “Completed” in POLi.
  • The customer’s account is debited.
  • But the credit is not transferred to the merchant’s account.
  • ANZ then reverses the debit, and the merchant does not receive payment.

This means a transaction that appears “Completed” in POLi may still be reversed by ANZ if suspected to be fraudulent.

Fraud Pattern Identified by ANZ

ANZ has observed recurring patterns of fraudulent behaviour involving coercion and deception. Typically, sophisticated criminals:

  • Coerce individuals with ANZ accounts to place online orders for goods or services.
  • Use other coerced individuals to either collect the goods in-store or provide delivery addresses.
  • The fraudster is typically neither the account holder nor the person collecting the goods, making the transaction difficult to trace without proper checks.

ANZ’s Recommendations to Mitigate Risk

  • In-store pickups:
    Require photo ID from anyone collecting goods. Ensure the name on the ID matches the name on the bank account used for payment. This significantly reduces the likelihood of fraud, as it makes the individual traceable. While this approach has proven effective in preventing high-value frauds, criminals have since shifted to targeting lower-value transactions — so this practice should be applied consistently.
  • Online orders:
    Do not ship goods or provide services until the payment has been verified in your bank account. This ensures that the transaction has settled and reduces the risk of non-payment due to reversal.
  • If fraud occurs:
    Police may be able to take action if there is CCTV footage of both the individual collecting the goods and the vehicle they arrived in. Footage of the person alone may not be sufficient, as they may be acting under duress.

Perspective: Low Volume, But Not Zero

Approximately 40,000 ANZ transactions are processed weekly via POLi. The number of reversals is very small and has mostly affected high-risk merchants, though recent cases show that lower-risk categories may also be impacted.

Why This Is Unique to ANZ

ANZ appears to be the only NZ bank that processes and then reverses payments in this manner. Other banks typically issue a “Notice of Dishonour” before a transaction is fully processed.

While the overall risk is low, it is important to understand that POLi does not guarantee settlement, even if a transaction is marked “Completed.”

Merco’s Advice to Merchants

  • Reconcile your bank account daily to confirm settlement of all payments.
  • Consider delaying fulfilment of goods or services until payment is confirmed.
  • Review your risk management processes, especially for payments from ANZ customers.

Most POLi transactions now settle same day, usually within two hours, but merchants should remain vigilant.

Looking Ahead: Open Banking Will Eliminate This Risk

Merco is actively progressing on its Open Banking journey, which will eliminate this type of settlement risk. By using secure, real-time bank APIs, Open Banking will ensure verified payment confirmation and greater protection for both merchants and customers.