What is Verification of Payee (VoP)?

Verification of Payee is a check that compares the name entered by the payer with the name of the account holder linked to the IBAN, before a transfer is authorized. The payer sees a match, close match, no match or check-not-possible result and decides whether to continue.

How it works

• The payer enters the IBAN and the payee name.
• The payer's bank sends a request to the payee's bank.
• The payee's bank compares the name with its records and returns the result.
• The payer sees the outcome, and for a close match, the actual name on the account.

Why it exists

Many fraud cases involve a fake IBAN given by someone posing as a supplier, a landlord or a family member. Misdirected payments also happen by mistake. Checking the name before sending reduces both.

Where it applies

In the euro area, the Instant Payments Regulation makes VoP mandatory for standard and instant credit transfers. The UK runs a similar service called Confirmation of Payee.

Limits

VoP checks the name, not the purpose of the payment. A fraudster who opens an account in the expected name can still pass the check.

What it means for payment operators

For your merchants paying out to sellers or suppliers, VoP affects payouts as well. Collecting accurate beneficiary names at onboarding avoids no-match results on their transfers.