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Digital payments are fast, easy, and convenient—but they’re not foolproof. Every year, thousands of people across Europe lose money to fraud or simple banking errors, often because of one tiny detail: the wrong name on a bank account.

To solve this, the European Union is rolling out a powerful new regulation: Verification of Payee (VoP). Starting October 5, 2025, all banks and payment providers in the euro area must check that the recipient’s name matches the account number before sending money. This one change could dramatically reduce fraud and make payments safer for everyone.

What Is Verification of Payee (VoP)?

Verification of Payee is a security check performed during a bank transfer. Right now, when you enter someone’s IBAN and name, your bank usually doesn’t verify if that name actually belongs to the account holder. Fraudsters use this gap to trick people into sending money to the wrong account.

VoP closes that gap.

When you try to send a payment, your bank will compare the recipient name you entered with the actual name registered to the IBAN. You’ll get one of these results:

• Match – The name matches. Safe to proceed.
• Close Match – Similar, but not exact. Double-check it.
• No Match – The names don’t match. Something’s wrong.
• Error – Verification couldn’t be completed. Try again or contact support.

It’s a simple, behind-the-scenes check—but it can stop payments from going to the wrong person.

Why Is the EU Introducing This?

The EU’s larger goal is to promote Instant Payments—money that moves between accounts in seconds. But faster payments also mean faster fraud. If money is stolen or misdirected, there’s little time to recover it.

That’s why the Instant Payments Regulation (IPR), adopted in 2024, makes VoP a legal requirement. It adds a critical safety layer so that people can trust fast payments as much as traditional ones.

This isn’t just about stopping scams—it’s about building a safer, smarter financial system across Europe.

Who Will Be Affected?

Consumers

If you use mobile banking or online transfers, you’ll see VoP in action. When making a payment, you’ll get a message if the name you entered doesn’t match the IBAN. You can still choose to go ahead—but the system will warn you first.

Businesses

Companies that make frequent or high-volume payments will also benefit from VoP. However, they’ll have the option to opt out of these checks (with the ability to opt back in later). For many businesses, staying opted in will reduce costly payment errors.

Banks and Payment Service Providers

The heavy lifting falls on PSPs. They’ll need to:

• Build or integrate real-time VoP systems.
• Ensure compatibility with EU standards.
• Inform customers clearly when mismatches happen.
• Offer the service at no extra cost.

When Does Verification of Payee Become Mandatory?

The regulation is rolling out in phases:

• Euro-area countries: By October 5, 2025
• EU countries outside the eurozone: By July 9, 2027

That means banks and PSPs in euro countries like Germany, France, Spain, Italy, and the Netherlands must be ready within the next year.

How Will It Work in Practice?

Here’s what a typical user experience might look like:

1. You open your banking app to send money.
2. You enter the recipient’s name and IBAN.
3. The bank runs the VoP check in real time.
4. You see a result: match, close match, or no match.
5. You choose to proceed or cancel the transfer.

If there’s a mismatch, your bank will display a message like:

“Warning: The name you entered does not match the account holder’s name. Please check with the recipient before proceeding.”

It’s that simple—but very effective.

Real-World Example: SurePay in the Netherlands

A similar VoP system already exists in the Netherlands, called SurePay. Launched in 2017, it quickly became the national standard. SurePay claims that VoP checks have prevented up to 80% of transfer fraud and reduced misdirected payments significantly.

The EU’s regulation is essentially expanding this concept across the entire SEPA region.

What If There’s a Mismatch?

When you see a “No Match” result, you’re not blocked—but you’re warned. It’s your decision whether to trust the transfer or double-check it first. However, if you ignore the warning and something goes wrong, you may be liable for the loss.

That’s why banks are also required to educate users about:

• What VoP warnings mean
• The risks of ignoring them
• Their rights regarding refunds or dispute resolution

No Extra Fees Allowed

This feature won’t cost you anything. Under the new rules, banks and PSPs must offer VoP for free—just like they do for fraud alerts or PIN protection. Security should be a basic service, not a luxury.

How Can Banks and PSPs Prepare?

For banks and payment providers, the clock is ticking. They need to:

• Adopt the EPC’s VoP Scheme Rulebook
• Integrate VoP APIs and real-time name-check systems
• Test thoroughly to ensure speed and accuracy
• Register with the EPC Directory Service (EDS)
• Educate customers before rollout

The Eurosystem, including the European Central Bank, is also providing a VoP platform based on tech developed by central banks in Portugal and Latvia. This shared service will help smaller PSPs comply.

What This Means for You

If you’re a consumer, you don’t need to do anything today—but starting in 2025, your banking experience will quietly become more secure.

• No more “blind” transfers
• Fewer costly typos
• Less chance of falling for impersonation scams

If you’re a business, talk to your bank about VoP implementation and make sure your finance team understands how it works.

If you’re a bank or fintech, the time to act is now. Integrating VoP is more than regulatory compliance—it’s a trust-building move that protects your users.

Verification of Payee isn’t just a rule—it’s a major upgrade to Europe’s payment system. It’s simple, effective, and long overdue. In a world where money moves in seconds, this extra layer of security will save users time, money, and stress.

When October 2025 arrives, you won’t just be sending money—you’ll be sending it smarter.