TechnoXander’s Verification of Payee Responder: Understanding the Responding Workflow
Verification of Payee (VoP) is a payee verification service which checks if the payee details input by payer and details held by payee bank match. The name check service is initiated even before the transaction is authorised or processed. The Verification of Payee service has been mandated for all European PSPs, EMIs and PIs which provision payment accounts as part of Instant Payment Regulation (IPR). The VoP service requires Requesting and Responding capabilities to ensure compliance with Instant Payment Regulation (IPR) and EPC VoP scheme. In this blog, we cover details of what Responding capability is and what are key features which can help your bank achieve compliance with IPR. What Is a Responding Capability? The Financial Institutions enabling responding capability will be able to respond to payee verification requests. As part of TechnoXander’s VoP product, we provision Responder module so banks can validate payee information securely enabling financial institutions (FIs) to handle incoming verification requests with precision and compliance. Let’s look at how Responding capability of TechnoXander’s VoP product works. How Verification of Payee Responder Module Works Emma, a small business owner in France banking with XYZ Bank, needs to send €2,500 to Stefan, a supplier in Germany banking with ABC Bank. Here is how TechnoXander’s RVM Responder module ensures that the payment made by Emma reaches the intender recipient as well as keeps ABC Bank compliant with regulatory requirements: The Responder Module of TechnoXander’s VoP product receives the industry-standard formatted name-verification request through a secure API where ABC Bank has partnered with TechnoXander to provision VoP capabilities. The name-verification request is received over MTLS so sensitive data is protected at all times. Before processing the request, the Responder Module authenticates and authorises that Emma’s bank is authorised to receive payee data. This step includes: To achieve authentication and authorisation quickly, we cache the EPC EDS Directory. The Responder module checks for the payee details held at ABC Bank. This look up can be performed by integrating directly with ABC Bank systems or through pre-uploaded account data held in Requester module’s secure DB. The look up needs to be quick, efficient and accurate so that the requests can be processed within the execution time set by EPC scheme. The Verification Mechanism encapsulated in the Responder module performs matching compare the payee details provided by Emma’s bank against Stefan’s account information held at ABC Bank. The algorithm is highly sophisticate and takes into account: The module generates a result—Match, Close Match, or No Match—based on the results delivered by the matching & verification engine. This response is shared with Emma’s bank in the industry standards in less than a second. Emma’s bank displays the result in their banking application, empowering Emma to make an informed decision about whether to proceed with the payment or abandon the journey. Key Features of the Responder Module The Responder Module performs authentication, authorisation, look-up, matching and sending results back in less than a second. The module is available 24/7/365 and employs multi-region, multi availability zone setup. All deployments are orchestrated using zero touch ensuring no downtime. The Responder Module supports multiple integration methods, making it adaptable to FIs’ existing systems. Integration options include: Built with stringent security protocols and industry-standard encryption, the Responder Module ensures compliance with regulatory requirements, protecting sensitive customer information. Looking for an indispensable tool which is compliant with EPC VoP regulations and IPR while providing secure and reliable payee verification services. Contact us today at vop@technoxander.com to explore how TechnoXander’s Responder Module can transform your payment operations.
TechnoXander’s Verification of Payee Requester RVM: Decoding the Requesting Capabilities
Verification of Payee (VoP) is a verification service which enables financial institutions (FIs) to verify the payee details in real-time. VoP is required to achieve compliance with Instant Payment Regulation (IPR), EPC VoP guidelines and to add an extra layer of security and trust for customers initiating SEPA Credit Transfers. At TechnoXander, we provision VoP Routing and Verification (RVM) service through two modules: the Requester and the Responder. What Is a Requesting Capability? The Requester Module in TechnoXander VoP RVM allows FIs to perform real-time checks to verify a payee’s name or identification before initiating a credit transfer. This capability is a mandatory obligation under EU Instant Payment regulation as well as EPC VoP Rulebook guidelines. The requester functionality also plays an important role in reducing fraud and minimising errors, providing confidence to customers making payments. How Verification of Payee Requester Module Works? Assume emma, a small business owner in France banking with XYZ Bank, needs to send €2,500 to Stefan, a supplier in Germany. Here is how TechnoXander’s RVM Requester secures the payment made by Emma with real-time verification as well as keeps XYZ Bank compliant with regulatory requirements: 1. Secure Transmission to Requester Module After Emma initiates the payment in her bank app, her bank sends Stefan’s name or identification and IBAN as input to TechnoXander’s RVM Requester module. The details input by Emma are transmitted over TLS security protocols and protected with OAuth protocols, ensuring that sensitive information remains protected from prying eyes at all times. 2. Validation of Input Request Details Emma’s Bank sends the payee information provided by Emma via the RVM provisioned Requester module’s API. The Requester module performs initial data validation, confirming the input request is complete and formatted correctly before proceeding. 3. Routing and Verification Mechanism The Requester’s routing and verification engine identifies Stefan’s Bank in Germany and determines the optimal path. The routing step is optimised based on variables like connectivity, directory presence, cost-efficiency and speed, ensuring that the request reaches Stefan’s bank as quickly as possible. To ensure correct routing and adherence with EPC scheme, RVM also caches EPC EDS Directory. 4. Payee Verification Request Sent to Responding Bank The name verification request is created in EPC VoP scheme specified format and sent to Stefan’s bank, which checks whether the provided name or identification and IBAN match an active account. 5. Payee Bank Response to RVM Requester Module Stefan’s bank sends the results back to TechnoXander’s RVM Requester module which is then instantly sent to Emma’s bank. The response comprised of matching results which confirm a match/no-match or close-match, completing the verification process in less than a second. 6. Matching Result for Emma on Banking Application Emma can now see whether the payee details known to her match the details held at Stefan’s Bank in a user –friendly matching result message on her banking app. Emma can make an informed decision on whether to proceed with transfer or not. This real-time result provides Emma with confidence in digital banking, assuring her that her funds will reach the right recipient. Key Features of Verification of Payee RVM Requester Module Our RVM is operational around the clock – 24/7/365 ensuring Financial Institutions can conduct payee verification checks anytime, meeting the IPR requirements as well as the demands of a fast-paced digital economy. Set up as a performance powerhouse, the RVM Requester module beats the Instant Payment Regulation execution time requirements as Financial Institutions receive real-time check results in less than a second. A flexible front end for performing both manual and bulk checks, allowing FIs to meet varied operational needs makes the RVM a complete package. Additionally, the Requester module provides a comprehensive analytics dashboard which is designed for FIs interested in gaining insights into transaction trends. The dashboard displays metrics like request volumes, processing speeds, and match results, helping FIs track and optimise their VoP processes. Looking to implement an adaptable, powerful RVM VoP check solution providing secure and real-time name verification? Contact us today at vop@technoxander.com to implement EPC-compliant VoP RVM Requester capabilities.
Optimising VoP Checks: The Role of Routing and Verification Mechanism
The European Payments Council’s (EPC) Verification of Payee (VoP) scheme focuses on predominantly fulfilling the EU legislative requirements set out by the IPR and emerges as a go-to set of guidelines for anyone looking to develop or implement VoP. The scheme aims to standardise the process of VoP checks ensuring that the 5000+ institutions talk the same language. Central to this framework are routing and verification mechanisms, which can lead the way for PSPs seeking seamless, accurate, and compliant payment operations. This blog explores the actors in VoP checks and the role of routing and verification within the EPC VoP scheme. The blog highlights how mechanisms must align with the scheme’s objectives and what to look for when selecting an RVM. Actors and their Roles in VoP The actors involved in the EPC VoP process are essential to the execution and success of the rulebook. These actors include: The Requesting PSP receives an IBAN and Name of the Payment Counterparty or potentially a data element, other than the IBAN, which unambiguously identifies the Payment Counterparty from the Requester (i.e., theidentification code). The Requesting PSP must initiate the request to verify these details about the Payee as provided by the Requester. The Requesting PSP Instantly sends a VOP Request to the PSP holding the Payment Account. Upon receipt of the VOP Response, the Requesting PSP Instantly informs the Requester about the VOP Response sent by the Responding PSP as appropriate. Responding PSP receives the VOP Request from the Requesting PSP and Instantly processes that VOP Request. The Responding PSP sends a VOP Response containing a matching result about the received details of the Payment Counterparty or the code Verification check not possible, back to the Requesting PSP. Use of Routing and Verification Mechanism’s will play an important role in connecting over 5000+ PSPs in the Eurozone for conducting VoP checks. How RVMs like TechnoXander can help? Routing and Verification Mechanism’s will play an important role in connecting over 5000+ PSPs in the Eurozone for conducting VoP checks. We can do the below as RVM for a PSP, EMI or PI looking to conduct VoP checks and achieve compliance with EPC VoP scheme and Instant Payment Regulation. Must-have for VoP service provider When selecting a Routing and Verification Mechanism (RVM) for the EPC VoP scheme, it is essential to evaluate its capabilities against the following key qualities: By prioritising these features, PSPs can select an RVM that not only meets current requirements but also supports long-term operational and regulatory needs. For PSPs and financial institutions, adopting the EPC VoP scheme is an opportunity to enhance customer trust, reduce operational risks, and align with the evolving payment ecosystem. As payment technologies advance, the role of routing and verification will only grow, paving the way for a safer, more efficient financial landscape. Is your organization ready to embrace the EPC VoP scheme? Contact us today at vop@technoxander.com to learn how our VoP RVM solution can help you implement VoP so your bank stays ahead in the payments industry.
EPC VoP Rulebook: Achieving Compliance with Instant Payment Regulation
The European Payments Council (EPC) plays a central role in the European payments ecosystem bringing harmony to payment processing across the SEPA zone. EPC has published the rulebook for Verification of Payee (VoP) which aims to bring uniformity and alignment to Eurozone payments. This rulebook is important for ensuring error-free payments and fraud prevention in the Single Euro Payments Area (SEPA). It is also key to achieving compliance with the Instant Payment Regulation. This blog covers the key aspects of EPC VoP Rulebook, its scope and the actors involved. It also addresses questions on how EPC rulebook aligns with the Instant Payment Regulation (IPR) VoP requirements, offering insights for decision-makers in banks and financial institutions evaluating VoP product providers. What is the European Payments Council (EPC)? The European Payments Council (EPC) comprising PSPs and Payment Associations is one voice on all European payment issues. EPC is also the scheme manager for 5 European Payments scheme which facilitates payments in 38 countries. Responsible for developing and managing payment schemes across the SEPA area, EPC is tasked with defining and implementing payment standards to promote secure, efficient, and integrated payments. With a view of aligning schemes with regulatory requirements, EPC has set out the VoP guidelines which should become a standard implementation of VoP across all SEPA countries. What is the EPC Verification of Payee (VoP) Rulebook? The EPC Verification of Payee (VoP) scheme is a set of rules, practices and standards for verifying Payment Account Numbers (IBAN) and Names of the Payment Counterparties, between Participants of the Scheme prior to initiating a SEPA Credit Transfer. The aim is to achieve interoperability for the provision and operation of VoP scheme across all participants processing SEPA payments. The EPC Verification of Payee (VoP) Rulebook aims to become an authoritative source of information for PSPs, EMIs and PIs for the functioning of VoP scheme. It also provides details on development and operational activities for VoP which TechnoXander as Routing and Verification Mechanism (RVM) and technology supplier has leveraged to build its EPC compliant VoP product. How EPC aligns with the IPR Requirements? The IPR has set out clear compliance requirements when performing VoP checks. The regulation sets out rules on when to execute the VoP checks and what responses can be sent. IPR also has specific requirements for availability and performance. EPC Rulebook has now set prescriptive set out rules and guidelines which aim to achieve compliance with IPR requirements. Real time Results: IPR expects the payer’s PSP to perform the Verification of Payee checks immediately after the payer provides relevant information about the payee and before the payer is offered the possibility of authorising that credit transfer. VoP Scheme sets a maximum execution time of five seconds (preferably 1 second or less) to execute the VOP Request from the moment the Requesting PSP addresses its VOP Request to the Responding PSP, to the moment the Requesting PSP receives the VOP Response from the Responding PSP to its initial VOP Request. This is as real time as it gets. Availability: IPR expects the Verification of Payee service to be provided with Instant Payments all day, throughout the day for 365 days. The Participants’ services based on the Scheme must be available 24 hours a day and on all Calendar Days of the year. Name or Identifier-Based Checks: IPR expects the possibility of conducting checks based on name or an identifier which uniquely identifies the payment account. The VoP scheme has API guidelines which support sending name or identifier for checks to Responding PSP. Matching: IPR expects the Responding PSP to provide a match, no match and close match response IPR also expects the payer’s PSP to indicate to the payer the name of the payee associated with the payment account identifier provided by the payer where the results of matching is a close match. The scheme supports the match, close match and no match requirements. The scheme rules state that in case of a ‘Close Match’ the Responding PSP shall provide the Requesting PSP with the name of the Payment Counterparty associated with the payee account. Why Bank Staff Should Consider EPC VoP Guidelines for Product Selection? As decision-makers within banks assessing potential VoP product providers, ensuring that RVM or technology provider has a very good understanding the requirements under Instant Payment Regulation and EPC VoP Rulebook is essential. It provides a certainty that the selected solution ensures compliance with both the EPC guidelines and the Instant Payment Regulation. By adopting an EPC-compliant VoP RVM or technology service provider, PSPs can confidently achieve compliance, improve transaction security, reduce fraud risks, and enhance customer confidence. Write to us at vop@technoxander.com to learn how our EPC-compliant VoP solution complies with Instant Payment Regulation and goes a step further. Being the compliance journey with right partners!
Verification of Payee (VoP): A Pillar in Instant Payment Regulation (IPR)
Understand Verification of Payee and see how it affects the latest Instant Payment Regulation (IPR) across the European Union.
8+ Key Benefits of VoP Implementation in 2025
Wondering why 5000+ Banks are taking a rational decision of Switching to VoP in 2025? The answer is, increasing number of APP frauds across the European Union and the anticipated increase in these numbers expected as European countries roll out Instant Payments. According to a report by The Global Treasurer, APP fraud is threatening European banking and financial institutions causing a loss of more than 6.3 billion EUR so far. This is where the call for Verification of Payee comes into picture in the fight against APP fraud to move ahead with a more stable financial landscape. The Verification of Payee, VoP implementation is a strategic need rather than just a regulatory requirement for safe operations in banking. Therefore, all banks and other financial institutions are being asked to implement Verification of Payee (VoP) solution within their systems as part of Instant Payment Regulation itself. Let’s dive deeper and understand the benefits of VoP implementation before the European Financial Institutions get ready for the 2025 deadline by the European Payments Council (EPC): Payee Verification: No misdirected payments Financial institutions can significantly reduce the risk of errors in payments and unauthorised transfers by using the Verification of Payee (VoP) solution. This means that the money reaches its desired destination reducing the chances of wrong payments and financial loss. Checking mechanisms in the system prevent accidental mistakes and deliberate attempts at fraud that alleviates both institution’s and its customers’ anxiety. Real-Time Account Verification: Reduced APP Fraud Verification of Payee’s name-matching algorithms check the details entered by Payee, like the beneficiary’s name, IBAN and payment reference in real time and give the result accordingly as Full Match, Close Match, or No Match. VoP’s real time check before the payment authorisation process significantly reduces the chances of APP fraud. It provides an added layer of security against fraudulent activities which make it even more difficult for fraudsters to reach their intended goals. Reduced Operational Costs Verification of Payee reduces the amounts of manual intervention that occur as a result of mismatch in payee details before payments are being processed. Financial establishments benefit from less costs for conducting fraud investigations and fewer resources expended in addressing payment errors. This reduces the cost incurred concerning operations and allows re-allocation of resources towards other vital areas of operation in the business. The risk of human error in validating payments also becomes minimised during the verification process. Enhanced Market Reputation VoP implementation puts your institution in the forefront within the banking industry. Your bank can stand out as an innovator in customer protection because of adopting cutting-edge payment verification systems ahead of compliance date. This innovation attracts technology-savvy customers for banks. It enhances your brand image as a progressive financial house. Early adoption of VoP sends a signal of innovation and a commitment towards security and makes you a trendsetter in the banking industry Increased Adherence to Compliance Financial institutions can strengthen their adherence to the compliance standards by implementing VoP which not only complies with Instant Payment Regulations but does so with a commitment to protecting sensitive data. The high level of focus on compliance standards prevents regulatory fines and therefore, protect the overall profits of financial institution. Increase in Reputation VoP feature is of great value to organisations involved in loan disbursals, supply chain financing and even large-scale business-to-business transactions. The advanced verification process facilitates the business customer onboarding process and reduces the risk associated with lending to businesses. It gives an added confidence over high-value business transactions. VoP will serve as an added check to authenticate the business credentials and curb fraudulent applications for organisations disbursing loans. Business Process Optimisation VoP solution enhance smooth payment procedure, fewer error occurrences on processing payments and precision in their pay-outs to their suppliers. The streamlined and optimised payment procedure helps a financial institution achieve the gold standards of performance optimisation when processing instant payments. Its real value accrues over time as more payments are processed within seconds and business processes become smoother leading to more time for other business priorities and innovation. TechnoXander: Your trusted Verification of Payee (VoP) TechnoXander offers the best Verification of Payee, VoP available to the European market. The system follows compliances such as ISO 27001:2022 compliant and provides the strictest form of security through: Seamless VoP Integration in 3 Simple Steps: 1. First Meeting and Introduction of NDA 2. Implementation plan and paperwork planning 3. Secure a VoP requester and responder status Get ready to make payments in VoP more secure with TechnoXander. Reach out to info@technoxander.com to see how our VoP solution can protect your business and customers. Our team of experts will help you plan and implement within the 2025 deadline maximising the benefits of this crucially needed payment security feature.
How we Meet the EPC Verification of Payee (VoP) Guidelines?
Check how we address and exceed all the Verification of Payee (VoP) guidelines given by the European Payments Council (EPC).
7+ Key Features of Verification of Payee Solution Providers
Are you struggling to meet regulatory demands while ensuring secure payment processing? Banks are facing increasing pressure to comply with regulations like the Instant Payment Regulation (IPR) and the Digital Operational Resilience Act (DORA). At the same time, payment fraud remains a critical concern, with global fraud losses projected to reach $40 billion by 2027. Choosing the right Verification of Payee (VoP) solution is essential in preventing fraud, safeguarding transactions and staying compliant in this evolving environment. Here, we’ll explore the eight essential features you should prioritize when evaluating potential VoP solution providers. 8 key features to look for in a VoP provider: Let’s dive into the eight key features to look for in a VoP provider 1. Enhancing Digital Operational Resilience Digital operational resilience refers to a financial institution’s ability to withstand and quickly recover from unexpected disruptions such as cyberattacks, system outages, or other technological failures. For instance, consider a scenario where a bank’s data center and systems go offline due to a cyber incident. A robust VoP provider would have a disaster recovery plan in place, allowing the bank to resume operations quickly and securely. This resilience helps banks avoid financial losses and maintain customer trust. 2. Scalable Solutions As banks grow and transaction volumes increase, it’s important that the systems they use are capable of scaling without compromising performance or security. VoP solutions should be flexible enough to grow alongside a financial institution’s changing needs. For example, during peak transaction periods like the end of month, payment systems may experience a surge in volume. A scalable VoP solution ensures that checks are conducted quickly, and transactions are processed smoothly even during high-traffic periods, maintaining seamless customer experience and security. 3. Robust Data Security Measures Financial institutions handle vast amounts of sensitive information, and a strong VoP solution must include advanced security features to safeguard against data breaches and fraud. Take a bank that handles millions of transactions daily. If this data is compromised, the damage could be catastrophic, both in terms of financial losses and reputational harm. A VoP provider that prioritizes encryption, multi-factor authentication, and secure data storage will significantly reduce these risks. 4. Seamless Integration Capabilities Financial institutions often rely on a range of systems to process payments, manage customer data, and monitor transactions. A good VoP solution must integrate seamlessly with underlying systems with a single-click API. For example, a bank with a legacy payment processing system needs a VoP solution that can integrate with their existing infrastructure without requiring a complete overhaul. This ensures that the new solution works in harmony with current systems, minimizing downtime and disruptions. 5. Real-Time Verification Capabilities Real-time verification of payee details is critical. This feature ensures that banks can verify account information instantly, reducing fraud and improving the customer experience by minimizing transaction delays. Imagine a scenario where a customer is transferring a large sum of money to another account. Real-time verification ensures the payee’s details are correct before the transfer is processed, avoiding costly errors and fraudulent transactions. 6. User-Friendly Interface The ease of use of any VoP solution directly impacts its adoption by both bank employees and customers. A user-friendly interface reduces training time and enhances operational efficiency, making it easier for users to navigate and use the system effectively. Consider a bank that rolls out a new VoP solution across multiple branches. An intuitive interface ensures that staff can quickly learn how to use the system, conduct VoP checks and improve productivity from day one. 7. Comprehensive Audit Trails Financial institutions are subject to strict regulatory requirements, and maintaining detailed records of all transactions and verification processes is essential for audits and compliance. A robust VoP solution should offer comprehensive audit trails to ensure accountability. For example, during a regulatory audit, a bank must be able to produce clear records of payee verifications for all transactions. Comprehensive audit trials ensure that the bank remains compliant with regulations like DORA, while also providing transparency in case of disputes or investigations. 8. Quality Customer Support Reliable customer support is essential for resolving any issues that arise during implementation or ongoing use of the VoP solution. Having access to responsive support ensures that problems can be addressed quickly, minimizing disruptions. Imagine a scenario where a bank encounters an issue with the VoP system during a high-traffic period. Quick access to responsive customer support can make the difference between a minor disruption and a major operational setback. Conclusion Selecting the right Verification of Payee (VoP) solution provider is essential for enhancing compliance, operational resilience, and fraud prevention. Prioritize features like scalability, data security, seamless integration, and real-time verification to stay ahead in the digital banking industry. Equip your bank for long-term success with our cutting-edge VoP solution. Contact us today to see how we can help you navigate compliance with ease!
COP TF’s Role in the VOP Scheme Management
The Verification of Payee (VOP) Scheme plays a role, in ensuring that payments reach the intended recipients accurately thus minimizing the potential, for fraud and mistakes. Overseen by the European Payments Council (EPC) AISBL the VOP Scheme Management follows an approach to uphold its reliability and flexibility.
5+ Obligations for VOP Service Providers
All PSPs registered under the VOP scheme must follow the set of rules and guidelines laid out in the VOP Scheme Rulebook by the European Payment Council.
