Introduction to the Verification of Payee Regulation

Starting 9 October 2025, the EU Regulation (EU) 2024/886, also known as the Instant Payments Regulation, will introduce mandatory Verification of Payee (VoP) checks for EUR-denominated payments. This process ensures that the beneficiary’s name matches the IBAN before a payment is executed, helping to reduce fraud and enhance payment security.
 

What SEPAGA EMI Does

To ensure full compliance with the upcoming Verification of Payee (VoP) regulation, SEPAGA EMI has developed a dedicated validation service that integrates directly with the European Payments Council (EPC) database. This service will go live on 6 October 2025, ahead of the regulatory enforcement date, reinforcing our commitment to secure and compliant payment processing.

How This Affects You

VoP will apply to all EUR payments to beneficiaries within the Eurozone, regardless of whether they are instant or standard credit transfers.  SEPAGA EMI will perform VoP checks on payments we process on your behalf. If discrepancies arise during verification, our support team will contact you to determine the appropriate next steps.

How VoP Works

After a payment order is created, SEPAGA EMI will verify the payee’s name against the IBAN provided:

• Exact Match: The name matches the account details. The payment will proceed without delay.
• Close Match: The name is similar but not identical. We will contact you to confirm whether to update the account name or proceed.
• No Match: The name does not correspond to the IBAN. We will ask for your confirmation before proceeding.
• Verification Not Possible: If verification cannot be completed, we will request your decision on whether to continue.

Terms and Conditions Amendments

We have made some amendments based on the above information provided, for our Terms & Conditions to be fully compliant with the new VoP Regulations.

This update will take effect on 29 November 2025. No action is required on your part. You can continue using our services as usual. By doing so after 29 November 2025, you will be deemed to have accepted the updated Terms and Conditions.

You can review the updated Terms & Conditions by clicking here.

** Note: Please bear in mind that, VoP does not block payments. It provides an additional layer of security. If you choose to proceed despite a warning, the responsibility for the decision remains with you. Please be aware that mismatches may cause delays in payment processing.

We are always available for you, to provide more information about how this may affect your business, please contact your Customer Care Officer or sent us an email at sepagasupport@sepaga.com.