VoP

What is VoP or Verification of Payee?

Verification of Payee (VoP) is a security process used to confirm the identity of the recipient before making a bank transfer.

How does Verification of Payee work?

The system checks whether the recipient’s name and the account number (IBAN) match the records of the receiving bank. If there’s any discrepancy, the user is alerted so they can review the information before completing the transfer. In other words, it’s a security filter designed to prevent fraud and errors, ensuring that the money reaches the correct person.

What are the benefits for users?

• Prevents errors in transfers by verifying the details before sending money, avoiding transfers to the wrong account.

• Protects against fraud, detecting false information and alerting users to potential scams.

• Provides real-time warnings if the beneficiary data doesn’t match, allowing corrections before sending.

• Offers confidence and peace of mind, ensuring the money reaches the right recipient and making transfers safer and more transparent.

What responsibilities do banks have?

• Integrate this verification service into their payment systems and keep it up to date.

• Alert users of discrepancies before processing the transfer.

• Offer the service at no cost, so customers don’t hesitate to use this security layer.

• Assume greater responsibility if the verification isn’t carried out and fraud occurs because money was sent to the wrong person. In such cases, the bank must take responsibility and may be required to refund the affected customer.

When does beneficiary verification or VoP come into effect?

The regulation is part of the new Instant Payments Regulation, also known as IPR, and is already in force. As of January 1, 2026, the implementation deadlines are as follows:

Eurozone

• Beneficiary verification is mandatory from October 9, 2025, for all payment service providers (PSPs) in the eurozone executing transfers in euros, including instant payments and standard transfers.

EU countries outside the euro

• For EU member states that do not use the euro as currency, the obligation to offer VoP associated with payments in euros has a deadline of July 9, 2027.