Verification of Payee

The payer initiates the payment by typing in the banking app the IBAN and the name of the receiver. The payer’s bank sends a VoP request to payee’s responding PSP. The responding PSP will answer back the name matching status:

• Match: the payer can authorize the payment
• No match
• Close match

In case of no match or close match, the liability and the decision are on the payer to proceed or not with the payment. The IBAN name checking is a process that takes less than a few seconds.   

PSPs have the freedom to not stick to the EPC name matching recommendation, but enhance them by for example including phonetic distance, nickname correlation, multilanguage management, alphabet conversion, synonym management etc. The Worldline solution has expended its name matching capability with a border control expert to maximise the number of close matches, without impacting the security.

Verification of Payee is one of the measures part from the Instant Payment Regulation (IPR) that keeps payers safe from possible fraud in real-time payments, like APP (Authorized Push Payments) fraud. This is the reason banks in the Eurozone will need to become VoP compliant until 9^th of October 2025 and make IBAN name-checks prior to authorizing SEPA Credit Transfer.

 In order to assure safe SCT inst, we are leveraging an industry-renowned partner specialized in border control and onboarding for our VoP solution. This advanced name-matching algorithm assures the accuracy of the name check and maximizes the number of executed SCT inst.  

When a name includes an abbreviation or middle initial, the check does not automatically fail. The beneficiary’s bank uses matching algorithms that account for common variations, initials, and abbreviations. Depending on the rules applied, this usually results in either a Match or a Close Match, where the payer is shown the account holder's full legal name to confirm before proceeding.

This typically results in a Close Match. According to European Payments Council (EPC) VoP matching guidelines, providing only a first initial alongside the correct surname (such as "E Lindqvist" instead of "Erik Johan Lindqvist") is recognized as a close match, allowing the payer to confirm the official name on file before completing the transfer.

Common abbreviations (such as "AB" for Aktiebolag or "Ltd" for Limited) and recognized trading names typically return a Close Match or Match. However, this depends on the beneficiary bank's specific matching algorithms, so the exact outcome may vary between institutions.

Worldline’s Verification of Payee (VoP) solution uses an advanced, machine-learning-driven matching engine designed to maximize accuracy and minimize false rejections. Aligned with EPC SEPA VoP Scheme rulebooks, our algorithm evaluates names dynamically across several dimensions:

• Cross-Border & Multicultural Names: Accurately parses naming conventions across different languages, alphabets, and international ordering (e.g., surname first).
• Abbreviations, Initials & Truncations: Automatically resolves common shortened forms, initials, and truncated middle names (e.g., “E. Lindqvist” vs. “Erik Johan Lindqvist”).
• Corporate & Legal Entity Forms: Identifies standard business suffixes, abbreviations, and trade names (e.g., “Ltd”, “GmbH”, “AB” for Aktiebolag).
• Nicknames & Common Aliases: Matches recognized informal variants and common substitutions without generating unnecessary false alerts.
• Phonetic Matching: Employs phonetic algorithms to match names based on pronunciation, tolerating minor auditory or transcription errors.
• Fuzzy Matching & Text Normalization: Cleans data by stripping special characters, harmonizing spacing, and smoothing minor typos to deliver a definitive Match, Close Match, or No Match response in real time.

Names are written differently across countries, languages and individuals. The table shows common conversions and how they affect the matching result. Demonstrating how a letter has more than one accepted conversion, a name can return to a match or a close match depending on the payee’s bank.