Commerce, purchasing and sales
Verification of Payee
In short and in plain language
With Verification of Payee, the bank looks at the name before a transfer.
It checks whether the name matches the account.
If it does not, the payer sees a warning. This is meant to protect against fraud.
Definition
Verification of Payee is a check that the payer’s bank carries out before a credit transfer. It checks whether the name entered matches the payee’s IBAN and shows a notice if there is a mismatch. The procedure is meant to protect against misdirected payments and fraud.