Luxhub provides Iban-Name check functionality.

The shareholders of LUXHUB, including Spuerkeess, BGL BNP Paribas, POST, and Raiffeisen, are voicing their support for the company's Payee Verification Platform today, only days after the Instant Payments Regulation was adopted by the EU Council.

Madilyn Swift

March 18, 2024

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Banking

The goal of this program is to mutualize the Verification of Payee (VoP) requirement deployment activities. Payment service providers (PSPs) are required to execute the VoP requirement for all credit transfers by September 2025. Although this deadline may seem far, PSPs must begin working on their projects as soon as possible to ensure on-time compliance. The Payee Verification Platform's development is welcomed by LUXHUB's shareholders, who also back the company's goal of providing a reliable solution for all PSPs.

What's new for an account holder or customer of the bank?
Upon a customer's intention to conduct a credit transfer through any channel, the bank must provide a service that verifies whether the beneficiary's name and IBAN match, do not match, or virtually match. In the event that a "close" or "no match" occurs, the payer will be notified of this information prior to being given the option to accept the payment. This will allow the client to make any necessary corrections to the data or to decline authorization.

Other than experts processing large payments, customers are unable to decline this service. If the client chooses to approve a credit transfer even when there is a "no match," and as long as the PSP fulfilled all of its duties, the latter will not be responsible if the credit transfer ends up going to someone they didn't intend. In the event that the service is unavailable or yields inaccurate results, either the payer's or the payee's PSP may be held accountable.

"Verification of Payee will positively impact the payment journey of every bank customer, by enabling safer transactions, through an immediate IBAN-name check verification," Claude MEURISSE, CEO of LUXHUB, stated.