Verification of Payee Deadline: Be Ready to Tackle the Challenge of Combatting Fraud and Comply with the Regulatory Obligation

Starting 9 October 2025, all SEPA Credit Transfer transactions will require prior Verification of Payee (VoP). This regulatory change means that banks need to be prepared to handle an increased volume of verification requests efficiently and reliably.

To comply with the new requirements, it’s essential for banks to ensure their systems are ready for the operational challenges posed by this change. The European Payments Council (EPC) has released a final version of the scheme rule book, which outlines the technical requirements for implementing VoP.

Key Considerations for Banks

One of the important considerations for banks is the integration of a robust Routing and Verification Mechanism (RVM). The EPC Directory Service plays a crucial role in standardizing the validation of payee details and ensuring up-to-date customer data. The inter-PSP API specification (version 1.0.1) has been updated last November 2024, and banks should align their systems with this specification to avoid disruptions.

Additionally, recent updates to VoP solutions aim to help banks navigate regulatory requirements smoothly, integrating the Verification of Payee (VoP) service alongside existing instant payment systems to ensure security and compliance. Ensuring compliance will involve adopting a reliable infrastructure that is capable of managing large transaction volumes while maintaining reliable and efficient operations.

Payment service providers (PSPs) must adopt robust verification processes to enhance security in financial transactions across Europe.

Key areas for banks to focus on include:

• Performance and Scalability: It is important to choose a platform that can handle millions of transactions daily to ensure reliability during peak demand.

• Name-Matching Accuracy: Implementing a reliable name-matching algorithm can significantly reduce errors in credited transfers, enhancing overall operational efficiency.

• Cost Management: Banks should consider a pricing model that allows for scalable operations while controlling costs associated with compliance and integration into existing payment systems.

• Integration Efficiency: Simple API integration or even batch integration can help minimize complexity and speed up the implementation process.

Banks must also develop mechanisms to handle VoP requests efficiently, ensuring seamless integration with the EPC Directory Service.

Are You Prepared for the Implementation of Verification of Payee?

As the deadline approaches, banks must take proactive steps to ensure both compliance and operational readiness in line with the European Payments Council's (EPC) guidelines. Worldline’s VoP solution is technically fully compliant with the final version of the European Payments Council (EPC) scheme rule book. The verification process is crucial in preventing fraud and reducing misdirected payments, ensuring secure and accurate transactions. We can help you make accurate, secure, and compliant account verification by ensuring real-time validation of payee details with an advance name-matching algorithm and a proven high-performance platform.

Apart from being already compliant with the final rule book, Worldline is already officially registered as a Routing and Verification Mechanism (RVM) within the European Payment Council (EPC) organisation, adhering to the VoP scheme protocols. Our VoP service enhances payment security and reduces fraud risks, increasing user confidence and ensuring interoperability among payment service providers (PSPs).

Learn more about our compliant, ready to integrate Verification of Payee solution:

• Visit our VoP Developer Portal
• Discover our Verification of Payee VoP product page