Securing Instant Payments in the EU
The EU's mandate for instant payments is revolutionizing finance, demanding smarter security measures. Ximedes offers a dedicated VoP backbone that ensures compliance and high performance, safeguarding every transaction.
Why Verification of Payee Matters
Adopting VoP is critical for banks and payment providers in the EU and EEA as they transition to instant payments.
Enhanced Fraud Prevention
VoP is a powerful tool against fraud, confirming the recipient's name matches the IBAN before a transaction is processed. This helps prevent funds from reaching fraudsters, reducing financial losses.
Regulatory Compliance
The EU mandates VoP to counter the increased risk of fraud associated with instant payments. Implementing VoP ensures compliance with these regulations, avoiding potential penalties.
Seamless Integration
Ximedes provides a VoP solution engineered for seamless integration with existing systems. This ensures a smooth transition to instant payments without disrupting current operations.
Competitive Advantage
Offering secure and compliant instant payments enhances customer trust and loyalty. This gives financial institutions a competitive edge in the rapidly evolving payments landscape.
How VoP Works
VoP involves real-time checks to verify the recipient's details before a payment is finalized.
Real-Time Request
When a payment is initiated, the Requesting PSP collects the recipient’s name and IBAN and sends a real-time VoP request to the Responding PSP.
Automated Lookup
The Responding PSP uses a standardized, automated lookup to verify the provided details.
Response Types
The response indicates whether there is an exact match, a close match, or no match between the name and IBAN. Banks process these checks rapidly, handling variations in names and languages to avoid false negatives.
RVMs and Intermediaries
Routing and Verification Systems (RVMs) can facilitate VoP requests, while intermediary PSPs operate under strict transparency and compliance rules.
Spotlight: Instant SCT-Compliance, Delivered
By January 9, 2025, every EU and EEA bank must accept instant payments, and by October, outbound instant payments are mandatory. Ximedes ensures you meet these deadlines with ease.
