Verification of payee
VoPAlso called IBAN-name check
Verification of payee is an EU service that checks whether the name of a payee matches the IBAN before a credit transfer is authorised. The Instant Payments Regulation made it mandatory for euro credit transfers from 9 October 2025. It applies to standard and instant transfers and must be free of charge for the payer.
How it works
When a payer enters an IBAN and name, the payer's bank asks the payee's bank to compare them. The result is a match, a close match with the correct name, no match or check not possible. Most banks use the European Payments Council's VoP scheme to exchange these requests within seconds.
Verification of payee targets misdirected payments and authorised push payment fraud across the EU. It also shifts liability. If the bank fails to run the check correctly and a payment goes astray, it must refund the payer. If the payer proceeds after a no match warning, the bank is not liable for that reason.
The rules
Introduced mandatory verification of payee, free of charge, for standard and instant euro credit transfers.
Payment service providers offering euro credit transfersRequired euro area PSPs to offer verification of payee before payers authorise credit transfers.
PSPs in euro area member statesExtends the verification of payee requirement to euro transfers offered by PSPs in non-euro area member states.
PSPs in EU member states outside the euro areaCommon questions
How is verification of payee different from confirmation of payee?
They work in the same way. Confirmation of payee is the UK service, directed by the Payment Systems Regulator. Verification of payee is the EU service required by the Instant Payments Regulation and run largely through the European Payments Council scheme.
Does verification of payee apply to all transfers?
It applies to euro credit transfers, both standard and instant, within its scope. Euro area PSPs had to comply from 9 October 2025. PSPs in non-euro area member states have until 9 July 2027 for euro transfers.
Does verification of payee cost the payer anything?
No. The Instant Payments Regulation requires payment service providers to offer verification of payee free of charge to the payer. The check applies to both standard and instant euro credit transfers.
