New Verification of Payee (VoP) service for credit transfers

Dear Customers,

We would like to inform you of an important regulatory change introduced by Regulation (EU) 2024/886 of the European Parliament and of the Council. Effective 1 January 2027, all banks and other payment service providers (PSPs) in Bulgaria are required to perform a verification of the payee. The verification affects all standard and instant SEPA credit transfers within the EEA countries. Before the payer authorizes the execution of the transfer, banks will verify the payee by comparing the name and IBAN of the payee specified in the payment order with the name of the payee registered with their payment service provider, and will inform the payer of the verification result. This service is provided free of charge, regardless of whether the payment order is submitted online or at a physical branch.

Frequently asked questions:

Important

Why is the verification of the payee performed?

The verification of the payee aims to:

  • increase the security of payments;
  • prevent the misdirection of transfers in case of new payees;
  • prevent cases of fraud;
  • enable the payer to make an informed decision before authorizing or refusing a transfer.

How is the verification performed?

At the request of the payer's PSP, the payee's PSP performs verification by matching the data whether the IBAN and the name of the payee correspond with the information stored with them.

The result is called Verification of Payee status ('VoP status'). The payee's PSP sends it back to the payer's PSP, which in turn notifies the payer of the verification result. The following responses may be provided:

  • Match: The name and IBAN match completely.

You may proceed with the transfer.

  • Close Match: A minor difference (such as a slight spelling variation, abbreviation, or trading name) is found. The actual name associated with the IBAN is displayed to the payer.

We recommend that you carefully compare the name you specified with the name registered with the payee's PSP.

  • No Match: The IBAN does not match the name of the payee.

We recommend that you do not authorize the transfer before verifying the name and IBAN of the payee.

  • Unable to Verify: The IBAN cannot be matched with the name of the payee. Possible reasons: The payee 's bank is unavailable or does not (yet) support payee verification / A technical issue has occurred / The payee's account is closed or not found / The payee's account is not a payment account.

We recommend that you do not execute the transfer before confirming the details with the payee.

Before authorizing and executing the payment, the payer decides, based on the verification result, whether the payment is addressed to the correct payee.

The payer may initiate a payment even if they receive a VoP status of 'Close Match', 'No Match', or 'Unable to Verify'. In this case, they assume the risk of transferring funds to a payment account that does not belong to the payee specified by them.

Process Scheme:


Is it possible to opt out of the service?

Business customers may opt out from receiving the VoP service when submitting multiple payment orders as a package, and opt in at any time to receive the service again.

The VoP service is not performed for paper-based SEPA transfers when the payer is not present at the Bank at the time the payment order is received.

What are the responsibilities of the payer?

  • To enter the full name of the payee, exactly as provided by them.
  • In the event of a result other than 'Match', to confirm the details directly with the payee.
  • To carefully evaluate the result of the verification of the payee before authorizing, modifying, or refusing the transfer.

Important to know:

The payer bears full responsibility if they proceed with a payment after receiving a 'Close Match', 'No Match', or 'Unable to Verify' status, or if they choose to opt out of the service where applicable, despite the warning that authorizing the transfer may lead to funds being transferred to a payment account not held by the payee specified by them.

The verification of the payee provides additional protection, but does not serve as a guarantee against attempted fraud. In case of suspicion of fraud, you should contact the Bank.

 

Sincerely,

The Fibank team