Verification of Payee: A Guide to the New SEPA Transfer Security Update

There's an important security upgrade rolling out for SEPA transfers, and we want to make sure you know all about it. It’s called Verification of Payee (VoP), and it’s designed to make your euro payments safer and more accurate than ever before.

Let's dive into what this new SEPA name check is and how it will improve your transfer experience at Bankera.

What is Verification of Payee and Why is it Changing?

Previously, when you made a SEPA transfer, the system primarily focused on one piece of information: the recipient's IBAN. As long as the IBAN was valid, the payment would be processed, even if the payee name you entered had a typo or didn't perfectly match the account holder's name.

While functional, this created a risk of misdirected payments due to simple errors or, in worse cases, payment fraud.

Verification of Payee changes this. This new security layer introduces an instant IBAN name check. Before you confirm a payment, your bank now communicates with the recipient's bank to verify that the name you entered matches the name registered to that IBAN.

How the New SEPA Name Check Works for You

This extra step is seamlessly integrated into your payment flow. When you initiate a SEPA transfer with Bankera, after entering the payee's details, you will receive instant feedback. Here’s what to expect:

• ✅ Full Match: The payments happen as usual. You can proceed with confidence, knowing your money is going to the right person.
• ⚠️ Partial Match: If there's a small difference (e.g., you entered "Jon Smith" but the account is under "Jonas Smith"), the system will automatically correct the name and will let you know about the correction in a prompt above “Make payment” button. If you are ok with it, continue as usual.
• ❌ No Match: A clear warning above “Make payment” button will appear if the name and IBAN do not match. This is a critical signal to stop and double-check the details with your recipient before sending any funds. If you still wish to proceed with the payment, you have the option to do so at your own risk by clicking on “I agree to proceed with provided beneficiary details”.

The Key Benefits: Enhanced Security and Fewer Errors

The goal of Verification of Payee is simple: to protect your money.

1. Reduces Fraud: It makes it much harder for scammers to trick you into sending money to an account that doesn't belong to the person or company you think you're paying.
2. Prevents Accidental Errors: It catches common typos in names or incorrect IBANs, preventing your payment from going to the wrong account and saving you the stress of trying to recover the funds.
3. Increases Confidence: This real-time confirmation provides greater peace of mind with every transfer you make.

See it in Action on the Bankera Platform

We've made sure this new security feature is intuitive and easy to use across all our platforms.

Making a SEPA Transfer in the Bankera App:

When you set up a new payment, the IBAN name check happens instantly before you confirm the transfer, displaying a clear status message.

Making a SEPA Transfer via Bankera Internet Banking:

The experience on our web platform is just as straightforward. You'll see the verification result directly on the payment screen.

Tips for a Smooth Transfer Experience

To ensure your payments go through without a hitch, follow these simple tips:

• Use the Full, Correct Name: Whenever possible, ask the recipient for the full legal name associated with their bank account.
• Double-Check the Details: Always review the IBAN and name before starting the transfer.
• Heed the Warnings: If you get a "No Match" notification, do not proceed. Contact the person or company you are paying through a trusted communication channel to verify the correct details.

This Verification of Payee standard is a major step forward for secure payments in the SEPA region. At Bankera, we are proud to implement these updates to keep your funds safe and your banking experience smooth.