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October 2025
SEPA Instant Payment Regulation and Verification of Payee: fast and safe payments for Europe
As part of the upcoming Instant Payments Regulation requirements, Verification of Payee (VoP) within the EU/EEA will become mandatory in October 2025. This checks the correspondence between payee and account holder using IBAN and name to prevent fraudulent or misdirected payments. To help you navigate and prepare for this we welcome you to our VoP knowledge repository, which provides key information and guidelines on this upcoming change to SEPA payments.
See Johnny Grimes, Head of Corporate Cash Products, Deutsche Bank explain how regulatory changes represent opportunities to enhance efficiency, transparency, and trust in the payments ecosystem.
At Deutsche Bank, we are here to help our clients navigate these regulatory shifts, offering solutions for real-time payments, fraud prevention, and seamless ISO 20022 migration.
Overview
What corporates need to know
Instant payments for corporate treasurers and their clients – what’s in our toolbox?
23 July 2025: flow briefing
As global adoption accelerates, instant payments are reshaping the payments landscape – delivering real-time, 24/7 transactions that meet rising expectations for speed and convenience. While initially driven by retail demand, their impact on corporate clients prompts a rethink of how businesses send, receive, and manage payments.
Taking instant payments in Europe to the next level
22 May 2025: flow briefing
The EU regulators' adoption of the SEPA Instant Payment Regulation marks the next stage of development for harmonised instant payments in Europe, bringing numerous new possibilities and use cases, as well as new requirements for payment service providers and their customers
Verification of Payee
May 2025: Client fact sheet
In April 2024, the EU Instant Payment Regulation 2024/886 (IPR) came into force, allowing real-time transfers. From October 2025, a Verification of Payee (VoP) service will be applicable to all real-time and Single Euro Payments Area (SEPA) credit transfers within EU/EEA countries in the Euro currency.
Webinar
Impact of the new EU SEPA regulation: Verification of Payee (VoP)
The webinar held by Deutsche Bank's Patricia McLoughlin and Jose Buey touches upon the implications of the new European SEPA Instant Payments Regulation, which will introduce changes in terms of Verification of Payee (the receiver of a payment). The first impacts are upcoming from 9 October 2025 and will be valid for banks/payment service providers (PSPs) of the Euro member states of the EEA.
FAQ
Show content of What is the purpose of VoP?
VoP is the verification of the recipient data contained in a payment and is primarily intended to counteract fraud that affects the immediate and irrevocable execution of real-time transfers, but also classic SEPA transfers. The EPC published a new set of rules for the VoP scheme, which sets out obligations, rights and standards for checking the IBAN and recommendations for name matching.
Show content of How does VoP work?
The aim of the VoP is to ensure that before the payment is authorised, a verification check takes place whereby the recipient's IBAN and name are forwarded to the recipient bank for verification. The bank will verify that the name matches the account and then reports back to the commissioning bank. Fundamentally, VoP is a comparison of whether the payee's IBAN and name correspond to the information stored with the recipient bank. The test result (VoP Status) must be known by the payer before authorisation.
Show content of What VoP results can I obtain?
The results of the VoP check will be one of the following:
- Match: Name matches the name on the beneficiary account
- Close match: Name is very similar, as part of VoP status, the real name is also advised
- No match: Given name does not match
- None: No bank accessibility/no account found/VoP service temporarily unavailable due to technical reasons
VoP is an information service. The payer can then decide, based on the VoP status, whether the payment is addressed to the right beneficiary before authorising the payment. Even in case of ‘No match’ or ‘Close match’, a client will be able to initiate the payment (assuming the liability risk in case of fraud).
Show content of Is VoP applicable to single and bulk payments ?
Yes, VoP is available for all SEPA classic and instant payments for single and bulk files. In the case of bulk payment files, clients will have the option to opt out of the VoP service, or will need to make changes to their own systems before they use the service.
VoP does not apply to SEPA Direct Debit.
Show content of What do I have to consider when I use the Electronic Banking Internet Communication Standard (EBICS) or Host-to-Host (H2H)?
For corporate customers who submit payment files, you will either be able to use VoP checking on these files, or alternatively you will have the option to ‘opt out’ of this VoP service. If a client wishes to use a VoP for their bulk files, they will need to submit their payment files with an indicator – a file name for H2H/GVO for EBICS, which activates the VoP check for the file. To opt out and to send the files without VoP service, the client has to submit their payment files without a VoP indicator. There is no change on the file name or GVO and files will continue to be executed.
EBICS channel clients will receive this response via the EBICS portal for action – either authorisation/rejection of their file – undertaken on a full file basis only. For all other channels, feedback will be a new User Interface via Corporate Banking Portal for the client to view a summary of VoP results and to download detailed results using pain.002 v.10.
Show content of Will I have to do changes when I use API, or can I opt out?
Transactions that initiate single payments (both SEPA Credit Transfers and SEPA Credit Transfers Instant) via API cannot opt out from VoP. Before October 2025, the below actions are required on the client side:
- Integrate and go live on the new Verification of Payee API
- Migrate to the latest version of the SEPA Instant Payments API
For testing and questions please reach out to your individual Deutsche Bank representative.
Show content of For receivables, what matching logic will Deutsche Bank apply to VoP requests on my accounts?
Deutsche Bank is currently developing our VoP matching algorithm, according to EPC guidelines, with the most appropriate logic to minimise ‘partial match’ or ‘no match’ responses, with consideration for virtual accounts, as well as use of trade names.
Show content of Will VoP be applicable to all payment types? Are Direct Debits also in scope?
VoP will be applicable to all SEPA Classic and SEPA Inst payments. SEPA DD’s are not mandated by the IPR regulation.
Show content of When will the VoP validation be performed?
VoP will be part of the Payment Initiation process, and the validation will be performed as soon as the necessary beneficiary data is available at the Bank and before payment execution.
Show content of What can be reasons for “Not possible to perform VoP”?
- Beneficiary bank not reachable/does not (yet) support VoP
- Technical issues
- Beneficiary account may be closed/not found
Show content of In the case of a ‘No Match’ or Close Match’ or ‘Not possible to perform VoP’ result can the payment(s) still proceed?
Yes, payments are processed based on a valid IBAN so even if the VoP result was a ‘No Match’ or ‘Close Match’ or ‘Not possible to perform VoP’ payment will still be processed if client decides to proceed. However, in case of potential fraud liability will be on client side.
Show content of Is there a cost associated to VoP?
No, the Instant Payment Regulation mandates that all PSPs need to offer VoP free of charge.
Show content of Can I opt-out of VoP?
There is an opt-out for corporates (non consumers) for bulk files.
We will publish channel-specific reference guides shortly. For further questions, please contact your local service/account manager.