New Verification of Payee service launches for free on 9 October 2025
07/10/2025
To boost confidence in, and the efficiency of, ordinary or instant bank transfers in euro, payment service providers (PSPs) must provide the Verification of Payee service at no added cost.
This service allows payers to verify whether the name of the payee matches the account details of the intended recipient, helping to increase security and prevent fraud and misdirected payments.
How does it work?
- The payer initiates the transfer.
- Their bank asks the payee’s bank for verification.
- The payee’s bank responds with one of the following results:
- Match
- Close match (the payer will be shown the name associated with the provided IBAN)
- No match
- Verification not possible
- Based on the result, the payer decides whether to continue with the transfer.
Bear in mind:
The International Bank Account Number (IBAN) is still the account’s unique identifier. If the verification result is a no match or a close match and the payer decides to continue with the transfer, the money will be sent to the indicated IBAN and the funds may not reach the intended payee. In these cases, the PSP will not be responsible for misdirected payments when an incorrect IBAN has been entered.
What about bulk payments? Your bank will provide the same service for bulk files. Banks have developed procedures to verify payees before sending payments. Payers may cancel unsatisfactory payments and send only those which they authorise. This is an optional service for non-consumer users.
Check with your bank for more details.
