Verification of Payee (VoP) – EURO SEPA Payments
by activpayroll
A New Layer of Security in European Payments
From 9 October 2025, the European Union is introducing Verification of Payee (VoP) checks for SEPA Credit Transfers (SCTs). This new requirement means that when you send money, your bank will check whether the name you enter matches the account details (IBAN) provided.
The goal is simple: reduce fraud, prevent misdirected payments, and give customers greater confidence in their transactions.
What is VoP?
VoP is a service offered by Payment Service Providers (PSPs) that verifies the payee’s name against their account details before a payment is processed.
This helps prevent:
- Sending money to the wrong person.
- Falling victim to scams or fraudulent activity.
- Errors caused by incorrect or outdated account information.
How VoP Works
The process is straightforward and happens behind the scenes:
1. The payer enters the payee’s name and IBAN.
2. The payer’s PSP sends a VoP request to the payee’s PSP.
3. The payee’s PSP checks the details against its records.
4. A response is sent back to the payer’s PSP.
5. The payer is informed of the result, which may be:
- Match – Name matches account details.
- Close Match – Name is similar but not exact; the account name will be displayed.
- No Match – Name does not match account details.
- Verification Not Possible – Check cannot be completed (e.g., closed account, missing data, technical issue).
Current Status
- HSBC currently enforces VoP checks only on manually keyed payments.
- For file-based payments, the service is not yet live but expected within the next 3 months.
- Corporate customers can opt out of VoP checks, but activpayroll intends to use the service for added protection.
What Customers Should Do
- If activpayroll makes your payments: Ensure account names you provide are accurate and up to date.
- If you make your own payments with activpayroll bank files: Double-check account names and confirm with your bank how VoP is implemented.
- If you make your own payments without activpayroll files: Review payment templates for accuracy. If you key payments manually, VoP may already be enforced.
Frequently Asked Questions (FAQ)
1. What is VoP and why is it important? It checks the payee’s name against their account details before payment, reducing fraud and misdirected payments.
2. When will VoP be available? From 9 October 2025. Availability may vary by bank, so check with your provider.
3. How does VoP work? You enter payee details → Sending bank requests verification → Payee’s bank responds with:
- Match
- Close Match
- No Match
- Verification Not Possible
4. What should I do if I get “Close Match”? Double-check with the payee using trusted contact details before proceeding.
5. What if I get “No Match”? Verify details, contact the payee independently, and confirm with their bank if needed.
6. What does “Verification Not Possible” mean? It may be due to technical issues, incorrect IBAN, or a closed account. Retry or contact the payee.
7. Does VoP check if an account is open? No, it only verifies name and IBAN.
8. Is VoP mandatory? Yes, for single payments. Optional (opt-out) for bulk/file-based payments. Confirm your bank’s approach.
9. How will VoP work for joint accounts? A match will be confirmed if either account holder’s name matches.
How activpayroll Can Help
For tailored guidance on how these changes may affect your business or for support, please reach out to our team via email SepaFileChanges@activpayroll.com and we will be happy to assist with your queries.