Everyday money · Jurisdiction EU

Verification of payee

Verification of payee compares the name of the payee with the IBAN. A match does not prove that the payment is safe.

In more detail

Regulation (EU) 2024/886 introduces this check for euro credit transfers. The payment service provider reports whether the name matches, is only close, or does not fit. Under the regulation, the check must not stop you from still authorising the transfer. A warning is a signal to pause, not a ban from Finmon.

Background

Fraud also uses names that almost fit, and real accounts that do not belong to the person you meant to pay. A match says the name fits the IBAN, not that the purpose of the payment is right. Pressure, secrecy and a new account number remain warning signs. Finmon does not run the check.

An example

You transfer the rent. The service reports that the name is only close to the account holder. That is not proof that the landlord has changed, and not proof that everything is right. Comparing the IBAN with the contract is a separate step. Finmon does not see the message.

A common misconception

If the name shows as a match, the payment cannot go wrong.

The check says something about the name and the IBAN. Purpose, pressure and an account that belongs to the wrong person remain risks of their own.

Source: Verordnung (EU) 2024/886. Last reviewed: 2026-10-29. Editorially reviewed on 2026-10-29. Next review 2027-10-29. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.