VOP WHY IS VERIFICATION OF PAYEE IMPORTANT
Overview of VOP
The EPC Verification of Payee (VOP) service is designed to ensure the accuracy of payee details in electronic payment transactions, reducing the risk of fraud and payment errors and serving as a critical layer of security by verifying the authenticity of payee details before payment execution.
VOP verifies that the payee’s name and account number match before a payment is executed, thus preventing payment mis-directions, reducing fraudulent transactions, and ensuring compliance with the EU Instant Payment Regulations.
EPC 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.
