In today’s world of instant digital payments, speed is everything. But when money moves fast, mistakes can also travel just as quickly.
That’s why a new safety feature called Verification of Payee (VoP) is being introduced across the European Union. To make sure that every euro sent actually lands where it’s supposed to.
VoP is a simple yet powerful tool that helps protect you from fraud by confirming that the account you’re sending money to actually belongs to the person or business you intend to pay. It might sound small, but this single step is changing how we trust and send money in the Single Euro Payments Area (SEPA).
What VoP Actually Does
Let’s say you’re sending money to a friend, supplier, or business. Normally, you type their name and their IBAN. That long string of numbers that identifies a bank account. But if you make a small mistake in the IBAN, the payment could go to the wrong account, and sometimes it’s hard to get that money back.
That’s where VoP comes in. Before you complete the payment, the system checks the name you entered against the information the recipient’s financial institution holds. Then it gives you one of four possible results:
- EXACT MATCH: The name and IBAN fit perfectly and you’re good to go.
- CLOSE MATCH: Something doesn’t fully line up. Maybe you misspelled a name or added an extra space.
- NO MATCH: The details don’t belong together so you better stop and double-check.
- NOT COMPLETED: Something went wrong in the process and you need to retry.
In other words, it’s like your financial institution saying, “Wait a second are you sure this is who you want to pay?”
As the European Union moves toward stronger protection for digital payments, Verification of Payee (VoP) is set to become a new standard of security across the Single Euro Payments Area (SEPA).
The initiative, stems from the EU Instant Payments Regulation and is powered by the European Payments Council (EPC) and the European Banking Authority (EBA). It aims to establish a consistent framework across all SEPA participants so that customers and businesses across the European Union can enjoy the same level of protection and clarity when making money transfers.
At ECOMMBX, we fully support this evolution.
We’ve prepared our systems and integrated the VoP framework to ensure our customers experience the smoothest, most secure version of digital payments available.
“ECOMMBX has always been at the forefront of payment innovation,” said Gregory Dellas, Group Chief Compliance & Risk Officer at ECOMMBX. “The Introduction of Verification of Payee is another step forward, strengthening the way we protect our users.”
By embracing this European initiative, ECOMMBX continues its commitment to safe, smart, and transparent transactions, helping to make financial life simpler and more secure for everyone.
ECOMMBX
