Is Verification of Payee mandatory in the EU?

Yes. Under the Instant Payments Regulation, VoP has been mandatory for euro credit transfers, standard and instant, since 9 October 2025 for PSPs in the euro area. PSPs in EU countries outside the euro area must offer it by 9 July 2027.

Who must offer it

Banks and other PSPs that offer euro credit transfers to their customers. The check must be free of charge for the payer and run before the payer authorizes the transfer.

How it is organized

The European Payments Council's VOP scheme provides common rules so that banks in different countries can query each other. Routing and matching services connect PSPs across the region.

Exceptions

Business customers sending bulk payment files can opt out, as the regulation allows this only for non-consumers. Some payment channels, such as transfers initiated in a branch, follow specific rules.

Effect on liability

If the payer is warned of a mismatch and pays anyway, the PSP is not liable for the loss. If the PSP fails to run the check, it can be liable.

What it means for payment operators

For platforms that send euro payouts to merchants or their sellers, VoP is part of every transfer. Accurate beneficiary data from onboarding, and clear handling of check results, reduce rejected or delayed payouts.