Insights
Safer Payments in Europe – New Verification of Payee (VOP) Scheme
Imagine you’re about to send a payment – but you’re not 100% sure if the IBAN or the payee’s name is correct.
What if there were a way to instantly check that information before the money leaves your account?
That’s exactly what the new Verification of Payee (VOP) scheme aims to do across the Single Euro Payments Area (SEPA).
💡 The VOP scheme allows banks and payment service providers (PSPs) to communicate to each other in real time. Before a SEPA Credit Transfer or Instant Credit Transfer is made, your PSP can instantly send a verification request to the recipient’s PSP – asking, “Does this IBAN and name match?” Optionally, other data like a VAT number or Legal Entity Identifier can be included.
The response is immediate: it might be a full match, a close match, no match, or a technical error. And the best part? You, the payer, get that response right away – helping to prevent fraud and misdirected payments.
🌐 This new standard, built on modern API technology and ISO 20022 data elements, supports compliance with the upcoming EU Instant Payments Regulation. But it’s also a foundation for future innovation, opening the door for new services that build on trusted payee verification.
🛡️ While VOP doesn’t identify individuals or businesses, it adds a crucial layer of protection and trust to Europe’s payments infrastructure.
👉 At Greenfields, we are committed to not only monitoring all relevant developments in our industry but also taking proactive measures to ensure our clients’ transactions are secure and compliant. We will keep you informed about advancements and their implications. Stay connected with us for the latest updates!