Verify the payee before payment: Openapi launches the new Verification of Payee API

Payment errors cost time and trust. But there is an even more serious risk: when the beneficiary’s name does not match the actual account holder, the consequences can include fraud, customer complaints, and regulatory violations.

For this reason, Openapi has integrated Verification of Payee (VoP) into its catalog of Trust API solutions: a service that verifies in real time whether the payee’s name actually matches the owner of the provided IBAN.

What VoP is and why it is essential

VoP is a European Open Banking standard created to reduce payment fraud. Before authorizing a transfer, the system compares the name entered in the payment form with the data registered at the beneficiary’s bank. If there is a significant discrepancy, the customer receives a real-time warning.

Whether it is an innocent mistake or an attempted fraud, the result is the same: a moment to pause and check. Introducing payee verification systems helps reduce the risk of fraud and payments to incorrect accounts by intervening before the transaction is authorized.

The value for your business

• Fraud prevention. Payee verification helps counteract fraud based on impersonation or payment data manipulation, allowing potential anomalies to be identified before sending money. 
• Regulatory compliance. Verification of Payee fits into the new European payments framework, which introduces specific requirements for payee verification and strengthens fraud prevention measures for bank transfers. Integrating the check via API allows banks, PSPs, and payment platforms to adapt to these requirements and manage verification directly within their systems. 
• Reduction of friction. Unlike other security systems that slow down the payment flow, VoP provides instant feedback. If the name matches, the customer proceeds seamlessly. If it does not match, they know immediately that there is something to check. Result: fewer payment errors, fewer disputes, and reduced fraud risk.
• Customer trust. Showing that you have implemented reliable security measures is a competitive differentiator. Your customers will know that the system is taking care of them.

How it works with Openapi

Integration is simple: when a user enters an IBAN and the payee’s name, the system sends this data to Openapi’s VoP API. The API queries the beneficiary’s PSP and returns the verification outcome in real time.  

In real time, you receive the verification outcome:

• Data is verified and matches
• Data is verified and partially matches
• There are significant discrepancies that require attention
• Data cannot be verified (for example, because the bank is not in the circuit) ?

At that point, you decide: proceed with the payment, ask the customer for additional confirmation, or block the transaction.

VoP is part of Openapi’s API Trust Suite: an integrated stack of solutions for verifying identity and documents, IBAN, email, phone number, IP, and URL.

Ready to integrate Verification of Payee? 

If you operate in the fintech, banking, or payments sector, Openapi’s VoP API allows you to integrate payee verification directly into your platforms, applications, and payment processes.

Verify name and IBAN before authorizing the payment and add an extra layer of protection against errors and fraud, without introducing complex steps for the user.