Implement PSR Verification of Payee (VoP) for cross-border SEPA payments under the EU Instant Payments Regulation

Verified steps

1. Understand the scope: the EU Instant Payments Regulation (effective from late 2024 in phases) requires Payment Service Providers in the SEPA zone to offer Verification of Payee checks before SCT Inst credit transfers; verify your PSP's compliance obligation and timeline based on your country's transposition schedule
2. Integrate with your country's VoP scheme or bilateral VoP API; the EPC is developing a pan-European VoP interoperability framework — check the EPC website for the current scheme rulebook version and participating PSPs in your market
3. Build a VoP check request: submit the payee IBAN and name to the scheme endpoint; receive one of: MATCH, CLOSE_MATCH, NO_MATCH, or NOT_AVAILABLE (payee bank not yet participating)
4. Present the result to the payer before payment execution: CLOSE_MATCH requires displaying the suggested name; NO_MATCH requires a high-visibility warning — do not block the payment but capture the payer's explicit override for your fraud liability records
5. For NOT_AVAILABLE: proceed without a VoP check but log the absence for regulatory reporting; you are not liable for APP fraud if the check was attempted but the beneficiary bank is not yet participating in VoP
6. Cache VoP results per IBAN per session only (not across sessions); an account can change ownership — re-verify for each new payment session