Since 9 October 2025, payment service providers (PSPs) in EU countries that use the euro have been required to offer a Verification of Payee (VoP) service for in-scope euro credit transfers, both standard and instant, free of charge to the payer. PSPs in EU countries outside the euro area follow later, with a general implementation deadline of 9 July 2027. The exact timing depends on where the PSP is based and what type of PSP it is.
VoP is part of the EU Instant Payments Regulation, Regulation (EU) 2024/886, which updates the rules for euro credit transfers across the EU. For businesses that send or receive euro payments, especially B2B transfers, this means name checks are becoming a normal part of the payment flow. It also means that clean and consistent counterparty data matters more than ever. For businesses outside the EU, VoP is most relevant where euro credit transfers are processed through an EU PSP, through an EEA PSP once those rules have been implemented locally, or through SEPA PSPs that participate in VoP scheme-based services.
What Is Verification of Payee?
Verification of Payee is a pre-payment check that compares the payee details you enter with the details held by the payee’s PSP. When you set up a euro credit transfer, your PSP sends the IBAN and the payee name to the payee’s PSP. For legal entities, and where the PSP supports this, the check may also use an identification code such as a VAT number or Legal Entity Identifier (LEI).
The payee’s PSP checks whether the details match the account information it has on file, then sends a response back to your PSP. Your PSP shows you the result before you approve the payment. The aim is to reduce misdirected payments and certain types of fraud without changing how euro credit transfers themselves work.
Under Article 5c of the SEPA Regulation, as amended by Regulation (EU) 2024/886, PSPs that offer euro credit transfers must also offer a VoP service for in-scope transfers. The service applies to both standard SEPA Credit Transfers (SCT) and SEPA Instant Credit Transfers (SCT Inst) and must be provided free of charge to the payer.
What Changed on 9 October 2025?
The Instant Payments Regulation introduced a phased timetable for instant payments, equality of charges and VoP. For PSPs in EU countries that use the euro, 9 October 2025 was the deadline to support sending instant payments in euro and to implement VoP for in-scope euro credit transfers.
For PSPs in EU countries outside the euro area, the main deadline for sending instant payments and providing VoP is 9 July 2027. Separate dates apply to certain payment institutions and electronic money institutions, and there are additional timelines for sending instant payments from accounts held in other EU currencies.
The European Central Bank (ECB) summary of the Instant Payments Regulation provides a clear overview of these deadlines and explains how VoP fits alongside instant payments and equality-of-charges rules.
What Happens When Names Do Not Match?
The regulation requires PSPs to inform the payer if there is a discrepancy between the IBAN and the payee details before the payment is initiated. The European Payments Council (EPC) VoP scheme describes four typical responses:
- Match
- Close or partial match
- No match
- Verification check not possible
A match means the details you provided are consistent with the PSP’s records for that account, so you can proceed without a warning. A close or partial match means the details are similar but not identical, for example because of a spelling difference or a variation between a legal name and a trading name. In that case, the PSP highlights the difference so you can double-check before proceeding.
A no match means the details you entered do not correspond to the account holder’s details. The PSP will warn you that the payment may be misdirected or fraudulent. You can still decide to proceed after a no match or a “verification check not possible” result. EPC guidance states that preventing execution solely because of a VoP result would breach the VoP and SCT or SCT Inst rulebooks. However, if you continue after a warning, you should only do so after additional checks and in line with your internal controls and any applicable local requirements.
What Does This Mean for Your Business?
For finance teams, VoP makes accurate and consistent counterparty data more important. Many corporate bank accounts are held under a legal name, while ERP and accounting systems may use trading names, abbreviations or old company names. These differences can lead to partial or no match results.
The European Commission’s implementation Q&A clarifies that, for legal persons, the “name of the payee” may be either the legal name or the commercial name, depending on what is available in the PSP’s systems. In practice, businesses should focus on consistency rather than assuming that only the full legal name will ever match. Keeping legal names, trading names, IBANs and identifiers such as VAT numbers and LEIs aligned across invoices, onboarding forms, banking mandates and internal master data can help reduce unnecessary VoP warnings.
VoP is a default requirement for PSPs, but the regulation gives business users some flexibility. Business users can opt out of receiving VoP checks for payment orders included in a bulk payment file, provided the PSP offers this option in line with Article 5c(6). Even if you choose to opt out for certain bulk files, improving data quality still helps reduce operational risk and exposure to fraud.
The Link Between VoP and Your LEI
A Legal Entity Identifier (LEI) is a unique 20-character code that identifies legal entities involved in financial transactions. It is part of the global LEI system overseen by the Global Legal Entity Identifier Foundation (GLEIF), which maintains the Global LEI Index as an authoritative, open database of current and historical LEI records and related reference data.
GLEIF explains that each LEI record is linked to verified reference information about the entity, such as its official name and registered address, and, where available, information about its ownership structure. Regulators, banks and market infrastructures already use LEIs to standardise counterparty identification, particularly for reporting and Know Your Customer processes.
The EPC VoP scheme rulebook allows an identification code that unambiguously identifies a legal payee, such as a VAT number or an LEI, to be used as an alternative to the name in VoP requests where the PSP supports this. This does not mean that an LEI replaces VoP or guarantees that every PSP will use LEI data in its matching process. However, because an LEI links your entity to standardised reference data, it can support cleaner onboarding, more consistent counterparty records and more reliable identification in processes where banks, PSPs or business partners choose to use LEI information.
Including your LEI and official entity details on invoices, contracts and onboarding questionnaires makes it easier for counterparties to set you up correctly in their systems. That, in turn, can reduce the risk of VoP warnings caused by inconsistent data. If you need to register a new LEI or renew an existing one, you can do this online through India LEI at https://indialei.in, an official LEI Registration Agent for Indian businesses.
What You Should Do Now
First, speak to your PSPs about how they are implementing VoP. Ask which payments are in scope, how the different match outcomes are displayed in your channels and what options you have for bulk files and business-user opt-outs. The European Payments Council (EPC) Verification of Payee scheme page is a useful public reference for the scheme rules that PSPs are aligning with.
Second, review your internal data. Make sure your own bank account details are correct and that the names on your accounts match how you present your business to customers and suppliers. Then clean your supplier and customer master data so that legal names, trading names, IBANs and identifiers such as VAT and LEI codes are stored accurately and consistently for key counterparties.
Third, check your LEI status. Confirm that your LEI is active and that its reference data reflects your current legal name and structure. Expired or outdated LEI records can cause confusion in onboarding and monitoring processes that rely on LEI data. By aligning your LEI data, internal records and payment processes now, you will be better prepared for VoP, reduce payment friction and make it easier for PSPs and counterparties to recognise your business correctly.