VOP WHY IS VERIFICATION OF PAYEE IMPORTANT?
VOP Overview
Verification of Payee (VOP) is a real-time checking service that validates whether the account holder's name matches the name provided by someone making a payment to a specific IBAN, helping to prevent misdirected transfers and fraudulent transactions.
The EU Instant Payments Regulation (Regulation 2024/886) mandates that Payment Service Providers (PSPs) implement a Verification of Payee (VOP) service for euro credit transfers
The European Payments Council (EPC) VOP scheme provides the technical infrastructure and standardized rulebook that enables PSPs across the European Union to implement verification of payee services in compliance with EU regulatory requirements.
Banfico is one of earliest fully qualified Routing and Verification Mechanism (RVM) offering EPC VOP scheme conformant verification of payee services both for requesting and responding PSPs.
Regulation 2024/886 IPREPC VOP Scheme
Introduction to Banfico’s RVM VOP service
Banfico is an RVM (Routing and Verification Mechanism) provider offering European Payments Council (EPC) Verification of Payee (VOP) service via Application Programming Interface (API) with specifications set out the rules for implementing VOP related APIs based on EPC’s VOP scheme rulebook, inter PSP API Specification, API security framework and other scheme related documentation. In compliance with the EPC’s VOP Rulebook Banfico as an RVM is responsible to the Requesting PSPs and Responding PSPs for the following services:
- Receive VOP Requests from the Requesting PSP who participates in the relevant RVM.
- Forward the VOP Requests in full and without alteration to the Responding PSP who participates in the relevant RVM if appropriate, ensuring that all data submitted by the Requester and the Requesting PSP reaches the Responding PSP.
- Forward a VOP Response from the Responding PSP in full and without alteration to the Requesting PSP.
- Provide any required authentication, authorisation, security and risk management procedures, etc.
How Banfico VOP Works
Banfico offers automated services to Requesters, Indirect Requesters, Responders and PSPs for Account Verification across all EPC use cases, and direct and indirect VOP request models. The verification in Banfico’s VoP service is carried out against the daily stored EPC Directory Service (EDS) file that contains mandatory information such as:
- Participant identifiers (BIC, name, country code).
- PSD2 National Authorization Numbers (NANs) from QWAC certificates.
- Roles.
- API endpoint details (including primary and backup URLs).
- This ensures that the account number belongs to the intended recipient and is not being fraudulently used.
