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.
TechnoXander expands in Europe with EPC VoP-compliant RVM
TechnoXander, an approved Pay.UK scheme aggregator with extensive experience in delivering Confirmation of Payee (CoP) solutions to UK financial institutions, has registered with the European Payment Council (EPC) as a Routing & Verification Mechanism (RVM). This underscores TechnoXander’s commitment to advancing compliance and fraud prevention in instant payments with VoP-compliant RVM. As the only Pay.UK aggregator authorised under the Crown Commercial Services framework to provide CoP services to UK public organisations, TechnoXander is a trusted partner in delivering Verification of Payee (VoP) services to institutions. Expanding its reach, TechnoXander has extended its payee verification solutions to include name verification checks beyond the UK and Europe. With logic-based IBAN validations spanning 80 countries, TechnoXander delivers precise and efficient global account verification. TechnoXander’s platform aims to simplify compliance and strengthen fraud prevention for over 5,000+ Financial Institutions across Europe preparing to implement VoP solutions under the Instant Payment Regulation in 2025. TechnoXander helps institutions meet regulatory requirements through seamless integration via a single API. “Compliance and fraud prevention are paramount in the instant payments era,” said Sonal Bomb, CEO & Co-Founder at TechnoXander. “Our EPC registration as a VoP-compliant RVM enables us to deliver cost-effective, secure and resilient Payee verification solutions to Financial Institutions across Europe.” About TechnoXander TechnoXander, a UK-based leader in Global Payee Verification and Open Finance solutions, is dedicated to delivering compliance-ready products tailored to meet the evolving needs of Financial Institutions. With operations across 3 continents, headquarters in London and a portfolio of 4 core products, TechnoXander empowers institutions to confidently navigate the instant payments era, enhancing compliance and fraud prevention. For more information, visit https://technoxander.com or contact vop@technoxander.com
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!
Critical IPR Compliance Deadlines for Banks Unveiled: Are You in Scope?
The recently unveiled IPR Compliance Deadlines mandates that all payment service providers (PSPs), E-money Institutions (EMIs) and Payment Institutions (PIs) must provide customers with the facility of instant SEPA credit transfers in euro. This includes both sending and receiving such payments, ensuring they occur in real-time—within 10 seconds of initiation. The facility must be available all day, every day, throughout the year. There is some ambiguity on who is in scope for Instant Payment Regulation and what are the applicable key compliance deadlines. Who is in Scope for IPR? What Channels are in Scope for IPR? The regulation covers all major payment channels, ensuring instant payments are accessible regardless of the medium used: Implementation Timelines The IPR stipulates phased implementation deadlines to accommodate varying readiness levels among PSPs: Exception – (until 9 June 2028): PSPs are not required to send instant euro payments from accounts denominated in their local currency if they don’t provide SEPA credit transfers for accounts today. The deadlines are set as per services provided and denomination of accounts provided by PSPs, EMIs & PIs across Eurozone and non-Eurozone member states. The timelines are proportional and leave adequate time for entities to upgrade systems and processes. The Instant Payment Regulation (IPR) is a big step towards streamlining payment systems across the EU, ensuring faster, safer, and more transparent payments processing. For banks and PSPs, this is more than just meeting a regulatory requirement—it’s an opportunity to enhance customer trust and operational efficiency while supporting the broader goal of financial inclusion. As the deadlines approach, early preparation and seamless integration of the necessary systems are critical to success. Ensure your compliance journey is smooth and efficient with TechnoXander’s Verification of Payee (VoP) solution. Whether you’re implementing instant payments for individual customers or bulk transfers for corporate clients, our robust, scalable, and regulatory-compliant VoP platform is here to support you. Contact us today at vop@technoxander.com to start your implementation and stay ahead of the IPR deadlines. rocessing. For banks and PSPs, this is more than just meeting a regulatory requirement—it’s an opportunity to enhance customer trust and operational efficiency while supporting the broader goal of financial inclusion. As the deadlines approach, early preparation and seamless integration of the necessary systems are critical to success. Ensure your compliance journey is smooth and efficient with TechnoXander’s Verification of Payee (VoP) solution. Whether you’re implementing instant payments for individual customers or bulk transfers for corporate clients, our robust, scalable, and regulatory-compliant VoP platform is here to support you. Contact us today at vop@technoxander.com to start your implementation and stay ahead of the IPR deadlines.
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.
Why Payment Delays in the UK Won’t Happen in Europe?
Check out the reasons for payment delays in the UK affecting Instant Payment guidelines and see if we can encounter the same in the Europe.
Latvian Non-Bank Payment Providers to Connect With EKS
Do you know that until October 2024 the Electronic Clearing System of Latvia, EKS was available only to credit institutions and the Treasury? Latvijas Banka has announced a landmark decision that non-bank payment service providers can now become a part of this critical financial infrastructure changing the face of payment services in the country. This is one of the most dramatic changes in the financial sector of Latvia that promises to revolutionize how payments are processed and managed across the nation. Considering this, here we are clearing all your doubts about it including As the European financial sector is progressing, so does Latvia. Latvia’s electronic clearing system (EKS) is the country’s central payment infrastructure. It handles both SEPA instant and standard payments. The system serves all countries within the European Union and European Economic Area. Therefore, it follows the new European direction that emphasizes having more open financial systems which consist of traditional as well as innovative payment service providers offering financial solutions like Verification of payee (VoP). What is the Latvia EKS System? Latvia’s electronic clearing system is the central payment system for SEPA instant and standard payments in all the European Union and European Economic Area countries. It is an extremely robust infrastructure, so it forms the back of all financial transactions that occur in the country to ensure swift and secure payment processing. The system was closed and access to these basic payment services required that non-bank payment providers go through intermediary banks. This added layer has proven inefficient, costly, and has restricted the development of innovation in the market. Who Can Access the EKS? The system now opens its doors to the following: This will put all the payment service providers on an equal footing, ensuring healthy competition and innovation in the financial sector. Various types of institutions bring different strengths and perspectives into the payment ecosystem, enriching the overall service offering that is available to Latvian businesses and consumers. Benefits for the Financial Ecosystem Efficiency The direct access to EKS brings several advantages: Cost Benefits Businesses and consumers can benefit in the following ways: Innovations Boost The increased diversity in providing payment for special needs purposes will prevail Technical Implementation and Security Connecting to the EKS platform requires meeting strict technical and operational standards to ensure system integrity. These include: Technical Requirements Security Measures Legal Compliance An institution which is involved in the system should adhere to the following: TechnoXander: Your Payment Innovation Partner We help Financial Institutions secure Instant Payments in the New EKS Ecosystem. As non-bank payment providers join EKS and gain access to instant payments, the need for robust fraud prevention becomes critical. TechnoXander’s Verification of Payee (VoP) solution plays a vital role in this new landscape by: This makes our VoP solution particularly valuable for new EKS participants who need to ensure secure and compliant instant payment processing from day one. To learn more about how TechnoXander can help your organisation take advantage of these new opportunities in Latvia’s payment landscape, please email us at info@technoxander.com. Key Takeaways
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.
