VoP - a new scheme that will make bank transfers more secure - is coming soon

EU Regulation 2024/886 will enter into force on 9 October 2025, disrupting some well-established practices in the world of payments. This regulation aims, among other things, to further secure SEPA euro transfers with the implementation of the “Verification of Payee” scheme (VoP, often also referred to as “name check”). What is important about this change? And what can we do to ensure its success? We spoke to Claude Wurth, Head of Business Unit Account- Based Payments to find out more.

Spuerkeess, like any other EU bank, will be required to implement the VoP scheme from 9 October. When entering a transfer in euros between banks in the euro zone (*) (and even for transfers within the same bank), the VoP process will automatically verify in real time that the payee's details (name and IBAN) entered by the customer match those held by the payee’s bank. This adds an additional layer of security before a transfer is executed.

(*): and all EU banks from 9 July 2027.

There are three possible outcomes:

Match: the details match and the customer can confirm the transfer, reassured that the money will reach the intended payee.
No match: the details do not match. The customer will receive a mismatch message and will have to check the details entered.
Close match: there is a slight difference in the details. The customer will receive a message and a proposal for the name of the payee linked to the account indicated (from the beneficiary’s bank). The customer will have to check the details.

When there is a "Close match" or "No match", after checking the details, the customer can either amend the instruction or validate the transfer as is.

Although this type of change makes money transfers more secure, it will make the payment flow less fluid than it is today. Customers could receive "No match" messages for transfers to their usual payees, or even ones whose details they have saved. The important thing for Spuerkeess will be to prepare for this change and inform both its staff and its customers.

We have planned communications to customers that will highlight the advantages of VoP and raise awareness of the fact that they also play an important role in the smooth execution of a transfer.

I think there are more positives than negatives. The VoP scheme aims to provide further protection against fraud and the risk of input error, but it will also disrupt the habits of those making payments and create friction, especially in the early days.

It will undoubtedly have a "big bang" effect at the European level from 9 October, but the effect will fade. With the VoP scheme, we have a solution that is entirely to the customer’s advantage. Of course, it will require a little more attention, but it will also protect the customer against fraud.

Each participant - payers and payees - will play an essential role in the proper functioning of the VoP system by following a few very simple recommendations:

The payee must ensure that he provides his customers with the exact name of his bank account or ideally his full bank account details (RIB). This information should be properly shown on invoices or other documents available to the payer and it must be kept up to date.

For the payer, when entering a transfer, he must check that the payee’s name entered is correct and that it corresponds to the bank account. The name to be used will be the one shown in the bank account details, which is usually the name shown on the invoice or other document. If in doubt, do not hesitate to ask the payee for the correct name to be entered.

Care must also be taken to update saved payees with the 'correct' names. "No matches" and "Close matches" must be checked carefully. This should reduce input errors or fraud.

To support this change, we have published a page on our website: www.spuerkeess.lu/VOP

The payer's bank must provide the VoP to all its customers, whether natural persons or legal entities.

Only TUP transfers and payments initiated by letter or e-mail do not benefit from the additional security provided by the VoP scheme. We recommend that customers use electronic channels such as S-Net.

Professional and institutional clients can also opt out of the VoP scheme, but only for multiple transfers sent by file.

Existing standing orders are not affected by the VoP scheme, unless they are modified. The VoP scheme will apply when new standing orders are created.