Until recently, payments were sent “blindly,” without knowing whether the account belonged to the right person. 

In transactions, verifying the recipient’s identity isn’t just important—it’s crucial.

That’s where Verification of Payee (VoP) comes in. It’s a simple but powerful way to prevent errors and fraud in your transactions. 

What is Verification of Payee (VoP)?

Verification of Payee is a real-time account verification service that cross-checks the payee’s name (or any other ID alias permitted by the scheme operator) against their account details before a payment is made. Think of it as a “double-check” system that ensures you’re sending money to the right person or business.

VoP is applied to all account-to-account (A2A) payments — instant or not — including B2B, B2C, C2C, and C2B transactions, as well as high-value and SEPA transfers. Banks, payment service providers (PSPs), and fintech platforms use it to verify account details, prevent errors, and reduce fraud before funds are sent.

Here’s how VoP works:

VoP checks the account holder’s name you’ve entered against the name registered to that account number at the receiving bank as soon as the account information is available and before the payment is authorized.

The system then returns one of four responses:

✅ Match: The name and account details align perfectly—safe to proceed

⚠️ Close Match: Minor discrepancies detected (e.g., “John Smith” vs “J. Smith”)—review needed

❌ No Match: The name doesn’t correspond to the account—high fraud risk

⛔ Unable to Match/Not possible/Other: The system could not verify the account—technical issues, timeouts, or the recipient’s bank doesn’t support VoP.

This verification happens in seconds, before the payment leaves your account, giving you a critical opportunity to stop fraudulent or erroneous transactions.

Why VoP Matters for Companies

The Cost of Payment Errors

Payment fraud and errors cost European significant losses annually. The total reported value of fraudulent transactions in the European Economic Area (EEA) was EUR 4.3 billion in 2022 and EUR 2.0 billion in H1 2023 according to the 2024 report on payment fraud by the European Banking Authority (EBA).

In fact, one of the fastest-growing threats is Authorised Push Payment (APP) fraud, where victims are tricked into willingly transferring money to scammers who impersonate legitimate businesses or contacts. This type of fraud accounted for 57% of the total value of credit transfer fraud in H1 2023, as reported by the same EBA study.

For B2B companies handling high-value transactions, a single payment error can mean:

  • Thousands in unrecoverable funds
  • Damaged supplier relationships
  • Operational disruptions
  • Regulatory compliance headaches

Key Benefits of Implementing VoP

Fraud Prevention

VoP is your first line of defense against:

  • APP (Authorized Push Payment) fraud: Unauthorised payments initiated by fraudsters
  • Invoice fraud: Scammers impersonating suppliers with altered bank details
  • CEO fraud: Social engineering attacks targeting finance teams
  • Misdirected payments: Honest mistakes that cost real money

Operational Efficiency

Automated verification means:

  • No manual account checks
  • Fewer payment reconciliation issues
  • Reduced back-office workload
  • Faster payment processing

Regulatory Compliance

As of October 9, 2025, VoP is mandatory in the EU/EEA for all Payment Service Providers under PSD2. With PSD3 on the horizon, VoP helps you stay ahead of compliance requirements across Europe.

VoP Implementation: Who Offers VoP Services?

Verification of Payee (VoP) services in the payments ecosystem are managed by two main types of actors:

  • PSPs (Payment Service Providers): This includes banks and entities like Devengo, which implement VoP to offer it directly to their clients.
  • RVMs (Routing and Verification Mechanisms): These are authorized routers that connect PSPs and facilitate data verification between them. They do not provide services directly to end users.

This structure ensures both efficient integration and reliable authentication of beneficiaries within payment systems.

For companies, working with a specialized payment service provider like  Devengo, can provide:

  • Multi-bank coverage
  • Better API integration
  • Enhanced analytics
  • Faster deployment

VoP in Action: Industry Applications

iGaming & Betting

  • Verify player identities during deposits/withdrawals
  • Reduce chargebacks and payment disputes
  • Comply with anti-money laundering (AML) requirements

Lending & Financial Services

  • Confirm borrower account ownership before disbursement
  • Verify repayment account details
  • Reduce loan fraud and identity theft

Insurance (Insurtech)

  • Validate policyholder accounts for claims payouts
  • Prevent fraudulent claim payments
  • Streamline premium collection

Real Estate (Proptech)

  • Secure high-value property transactions
  • Verify tenant/landlord payment accounts
  • Reduce deposit and rent payment fraud

The Multi-PSP Challenge: Why You Need a Centralized Solution

Companies handling high payment volumes—whether in gambling, lending, marketplaces, or subscription platforms—often rely on multiple Payment Service Providers (PSPs) to optimize transaction routing, reduce costs, and ensure reliability.

Yet each PSP usually requires its own VoP integration, turning a single compliance step into a repetitive, resource-heavy process that slows time-to-market.

The result? Operational complexity that multiplies with every provider relationship, draining time and budget that should go to your core product.

Want to explore how VoP can benefit your business?

Don’t Let Multiple VoP Integrations Slow You Down! Whether you need to understand the advantages or implement VoP across multiple payment providers, let’s talk!

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