VoP Compliance: Key Guidelines & Rules
TechnoXander’s coverage of Verification of Payee (VoP) highlights: VoP Defined: Ensures the payee’s details (name, IBAN, or identifier like VAT/LEI) are verified before SEPA payments are authorized. How It Works: A Requesting PSP sends payee information to the Responding PSP, which responds in real time with a status—match, partial (close) match, or no match. RVM Role: Routing & Verification Mechanisms (RVMs) handle the secure and fast routing of VoP requests/responses across PSPs, often leveraging cached copies of the EPC Directory Service for efficiency. Scope & Deadline: Over 4,000 European financial institutions must comply by 5 October 2025, or face potential fraud risks and non-compliance. Benefits: Mitigates APP fraud and misdirected payments Enhances trust and UX in digital payments Supports regulatory alignment and operational savings Challenges: Integration complexity across systems Ensuring user acceptance Managing regional disparities in readiness...