Enhancing payment security with Verification of Payee

Verification of Payee (VoP) is a procedure used to verify the recipient’s name and account before initiating an account-to-account payment. It enhances payment security by helping the payer to confirm the identity of the payee, thus reducing the risk of fraud.

Tietoevry’s VoP solution streamlines the verification process with robust algorithms that compare the payee’s details against stored records. By providing clear responses (Match, No Match, Close Match, Unavailable), it empowers payers to make informed decisions to proceed with the payment or not.

The Verification of Payee (VoP) solution offers four potential outcomes:

• Match: The name and account/IBAN match.
• No Match: The name and account/IBAN do not match.
• Close Match: The typed name and account/IBAN is a close match.
• Unavailable: It has not been possible to check the name.

Tietoevry's VoP solution is an isolated, independent module that operates prior to the payment process. It uses modern APIs based on ISO20022 formats to communicate with central infrastructures and other payment systems, ensuring seamless integration and efficient operation.

• 2024
  • November - RIX Inst (Sweden)
• 2025
  • January 9th - SEPA Inst (for receiving in EU countries)
  • October 9th - Compliance deadline for VoP for EURO banks, including Nordic banks in Euro-countries.
• 2026
  • Q4 - PSD3 and PSR come into effect and transition period of 18-24 months begins
• 2027
  • January 9th - Non-eur countries for receiving SEPA Inst.
  • July 9th - Non-eur countries for sending SEPA Inst.
  • July - 39 months after publication for non-euro banks VoP for all SEPA CT applies
  • Q4 - VoP mandated for all credit transfers in the EU (including Nordic countries).

Implementing VoP now helps mitigate increasing fraud risks, meet customer expectations for robust security, and maintain competitiveness through interoperability and adherence to upcoming regulations.