EBA Clearing publishes specs to provide PSPs with Verification of Payee at a pan-European level

This post was originally published on Finextra (Security)

EBA CLEARING announced today the publication of the user specifications for its Verification of Payee solution.

The specifications are based on the proposal of the European Payments Council’s VOP Scheme Rulebook.

The solution will leverage building blocks of its recently launched Fraud Pattern and Anomaly Detection (FPAD) functionality to provide a comprehensive IBAN/name matching solution with a broad reach across SEPA starting from December 2024. The delivery will be completed 10 months before the October 2025 deadline set by the Instant Payments Regulation, when the obligation for payment service providers (PSPs) in the eurozone to provide a Verification of Payee service to their customers will come into force.

FPAD is an integral part of the pan-European retail payment systems STEP2 and RT1 and has been available since March 2024. FPAD provides the users of both services with a wide range of real-time fraud prevention and detection tools. The functionality already allows PSPs to conduct beneficiary name verifications before a payment is sent. With the December 2024 delivery, this functionality will be enriched with the EPC VOP Rulebook requirements.

PSPs will have different options to leverage the comprehensive Verification of Payee capabilities of FPAD, both on the requesting and responding side.

Read the rest of this post, which was originally published on Finextra (Security).

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