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.
