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Verification of Payee
Enhance payment security and build consumer trust with Verification of Payee
Our Verification of payee (VoP) solution means financial institutions can offer customers greater transparency and reliability in their transactions. By matching payee details before payments are processed, you can prevent fraud and misdirected transactions while simplifying regulatory compliance across Europe.
Rising fraud, consumer trust and complex compliance
VoP aims to minimise payment fraud and misdirected payments by enabling the payer to verify if the IBAN and payee name match with the account details held by the payee’s PSP. This reduces costly payment errors, ensuring funds reach the intended recipient and preventing unnecessary disputes. While the benefits are clear - reduced fraud and enhanced security - the journey to compliance can be complex.
Verification of Payee solutions: The future of payment security
The European Commission’s 2024 update to the Instant Payment Regulation (IPR) paves the way for widespread adoption of Instant Payments and Verification of Payee across Europe by 2025.
Strengthen consumer confidence with our Verification of Payee solution
We simplify compliance and security for financial institutions. Our API-first VoP solution integrates seamlessly into your existing infrastructure, allowing you to meet regulatory requirements while focusing on growth and improving customer experience.
Challenges in implementing a Verification of Payee solution for PSPs
Implementing a Verification of Payee solution is not without its challenges; from ensuring compliance with the EU regulations, to the complexities of deploying a name-matching algorithm, to managing complex technical integration with the Verification of Payee scheme. Failure to act now, could lead to customer attrition as consumers increasingly favour institutions that offer enhanced security through verification of payee. These challenges are exactly what our Verification of Payee solution is designed to solve.
01
Approaching deadlines
Approaching deadlines
PSP based in the Euro area have until October 9th to comply with the regulation
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Future compliance
Future compliance
Navigating the evolving compliance landscape now and in the future
03
Implementation
Implementation
Designing and building a VOP service with an intuitive customer experience in your SEPA payment journeys
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Technical integration into a VoP service
Technical integration into a VoP service
Integration into EPC services
Verification of Payee Solution Overview
Why choose our solution?
Seamless integration, proven technology, and future-ready compliance.
Enhance trust and reduce fraud with our Verification of Payee solution
The instant payments landscape is evolving rapidly and compliance with VoP regulations is essential to stay ahead. The Form3 VoP solution offers PSPs a way to enhance security, reduce fraud and meet regulatory deadlines without the operational burden. Provide consumers with greater confidence in every transaction with a safer, more reliable payment experience.
Frequently asked questions
To verify a payee, the Verification of Payee (VoP) service is used. This process involves several steps:
Initiation: The payer (Requester) provides the payment details, including the payee's name and IBAN, to their Payment Service Provider (PSP).
Preparation: The Requesting PSP verifies that all mandatory attributes are provided and prepares the VoP request message.
Transmission: The VoP request is sent to the Responding PSP, either directly or via a Routing and Verification Mechanism (RVM).
Verification: The Responding PSP checks the provided details against its records and generates a VoP response.
Response Handling: The VoP response is sent back to the Requesting PSP, which then informs the payer of the result. The response can indicate a match, no match, or close match.
The entire process is designed to be completed within a maximum execution time of three seconds, with a preference for one second or less.
Verification of Payee (VoP) providers in Europe are primarily Payment Service Providers (PSPs) that participate in the VoP scheme. These include:
Requesting PSPs: PSPs that initiate the VoP request on behalf of the payer.
Responding PSPs: PSPs that receive the VoP request and verify the payee's details.
Routing and Verification Mechanisms (RVMs): Entities that facilitate the routing and verification of VoP requests and responses. These can include payment clearing and settlement providers, automated clearing houses, or intra-PSP and intra-group arrangements.
The European Payments Council (EPC) oversees the development and maintenance of the VoP scheme rulebook, which sets the standards and guidelines for these providers.
Payee validation, in the context of the Verification of Payee (VoP) service, refers to the process of confirming that the name of the payee matches the account details provided (such as the IBAN). This validation is performed before the payer authorises the credit transfer to ensure that the payment is directed to the correct recipient. The VoP service helps to prevent fraud and errors by verifying the identity of the payee, thereby reducing the risk of misdirected payments. The validation process involves checking the provided details against the records of the Responding PSP and generating a response indicating whether the details match, do not match, or are a close match.
Frequently asked questions
How do I verify a payee?
To verify a payee, the Verification of Payee (VoP) service is used. This process involves several steps:
Initiation: The payer (Requester) provides the payment details, including the payee's name and IBAN, to their Payment Service Provider (PSP).
Preparation: The Requesting PSP verifies that all mandatory attributes are provided and prepares the VoP request message.
Transmission: The VoP request is sent to the Responding PSP, either directly or via a Routing and Verification Mechanism (RVM).
Verification: The Responding PSP checks the provided details against its records and generates a VoP response.
Response Handling: The VoP response is sent back to the Requesting PSP, which then informs the payer of the result. The response can indicate a match, no match, or close match.
The entire process is designed to be completed within a maximum execution time of three seconds, with a preference for one second or less.
What are verification of payee providers in Europe?
Verification of Payee (VoP) providers in Europe are primarily Payment Service Providers (PSPs) that participate in the VoP scheme. These include:
Requesting PSPs: PSPs that initiate the VoP request on behalf of the payer.
Responding PSPs: PSPs that receive the VoP request and verify the payee's details.
Routing and Verification Mechanisms (RVMs): Entities that facilitate the routing and verification of VoP requests and responses. These can include payment clearing and settlement providers, automated clearing houses, or intra-PSP and intra-group arrangements.
The European Payments Council (EPC) oversees the development and maintenance of the VoP scheme rulebook, which sets the standards and guidelines for these providers.
What is payee validation?
Payee validation, in the context of the Verification of Payee (VoP) service, refers to the process of confirming that the name of the payee matches the account details provided (such as the IBAN). This validation is performed before the payer authorises the credit transfer to ensure that the payment is directed to the correct recipient. The VoP service helps to prevent fraud and errors by verifying the identity of the payee, thereby reducing the risk of misdirected payments. The validation process involves checking the provided details against the records of the Responding PSP and generating a response indicating whether the details match, do not match, or are a close match.