Starting next week, Wallter is implementing a crucial new feature on all SEPA (Single Euro Payments Area) debit transfers: Verification of Payee (VoP). This isn’t optional; it’s a mandatory safeguard required by the new EU Instant Payments Regulation (Regulation (EU) 2024/886), and it will be automatically enabled for your business account.
The goal? To significantly increase your payment security and protect your business from sophisticated financial fraud.
How Verification of Payee (VoP) Works
For every SEPA debit transfer, the system instantly verifies that the beneficiary name you entered matches the name legally linked to the IBAN. This crucial security check happens before you complete the transaction, providing you with one of five clear results:
- 🟢 Match: The name and IBAN match perfectly – payment proceeds immediately.
- 🟡 Close Match: There is a minor difference (e.g., a small typo). The system shows you the correct registered name; you can choose to continue or edit the name.
- 🔴 No Match: The name and IBAN do not match—the payment is blocked. Action: Confirm the correct details directly with the beneficiary before retrying the transfer.
- 🟡Not Supported: The beneficiary’s bank does not support VoP (or the account is outside the euro area). Action: You must double-check the details yourself before proceeding with the payment.
- 🔵 Not Available: The VoP service is temporarily unavailable (e.g., technical issue). Action: You can proceed with the payment, but we recommend you confirm the details.
You can learn more about the scheme by watching this short video from the European Payments Council: Verification of Payee scheme.
Why This is Important
VoP is a key safeguard against Authorized Push Payment (APP) fraud, where fraudsters trick businesses into sending funds to the wrong account. By verifying the beneficiary’s name, VoP ensures payments are directed to the correct recipient, reducing risk and increasing trust in SEPA payments.
What You Need to Do
Our Verification of Payee service will be completely free, and you don’t need to enable anything to have it working. The feature will be applied automatically. To ensure smooth transfers, always provide the full legal name of your business partners when making payments.
