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On the 7th of February 2024, the European Parliament adopted the final regulation on Instant Payment (IPR), with an implementation date on the 9th of October 2025 for all PSPs in the SEPA zone whose currency is the euro.
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The IPR requires a Verification of Payee service :
- The implementation of a systematic IBAN Name Check at each SCT Instant and SCT Regular order to third parties
- At the request of the Payer’s PSP, the Payee’s PSP verifies that the payment account identifier and the Payee’s name provided by the Payer match (IBAN Name Check)
- Name of the payee : The name and surname for natural person and the commercial or legal name for a legal person
- When the beneficiary is a legal person, an optional data element other than the name can be checked in substitution of the payee’s name (fiscal number, a European unique identifier, LEI)
- The IBAN Name Check must be carried out outside IP processing (10 seconds), immediately after the Payer provides relevant information about the Payee and before the Payer is offered the possibility of authorizing the payment
- IBAN Name Check is free of charge for the Payer
- 4 statuses: MATCH / ALMOST MATCH and the payer’s PSP shall indicate to the payer the name of the payee / NO MATCH / VERIFICATION CHECK NOT POSSIBLE with the reason of this impossible check
- Possible exception: opt-out of the Payer (only for bulk payments), paper-based payment orders if the Payer is not present
- No payment rejection linked with the IBAN Name Check response even if no match, almost match or verification not possible.
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