Verification of payee (VoP)
This article is for Tipalti users who make SEPA payments to suppliers or payees with bank accounts in the EU. The checks are aligned with the EU Verification of Payee (VoP) regulation.
Verification of Payee (VoP) is an EU regulatory requirement that ensures the payee’s name (individual or company) matches their bank account details before a payment is processed. This measure helps prevent fraudulent or misdirected payments, reduces operational overhead from payment errors, and maintains regulatory compliance.
This check applies to all SEPA transfers you make to payees with bank accounts in the following EU countries, regardless of your company's location:
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How does VoP work?
To ensure payee and payment accuracy, VoP checks run automatically when payees update their details.
Here’s how it affects the following flows:
This check is performed for both new and existing payees when they edit their details in the Supplier Hub / iFrame. The Name on account field is automatically populated from the previous Address screen. For Company, the payee needs to choose from the individual name or enter a new name.
- Full Match: If the name provided by the payee is an exact match for the name on their bank account, they can continue the onboarding process.
- Mismatch: If there is a Partial Match or No Match, the payee will be prompted to correct their name to an exact match before they can proceed. They will not be able to complete their setup until the name fully matches.
When you add or edit a payee’s details in the Tipalti Hub, you'll see a dialog informing you that changing the name of a payee will reset the payment details.
Once the details are saved, you'll need to tell your payee to update their details in the Supplier Hub / iFrame. You can also log in as the payee and update their details on their behalf. For more info, go to Manage actions for a payee.
When updating a payee’s details in the IFrame/ Supplier Hub:
- If the name matches, the payee details are saved.
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If there's a mismatch, a dialog will show (just as in the onboarding flow), prompting you or the payee to correct their details.
This is the final, automated VoP check that occurs just before a payment is processed. The outcome of this check determines the payment's status.
- Full Match: Payments proceed normally. No action is required.
- Partial Match: The payment is processed. You will receive a daily email notification listing payees with partial matches. We highly recommend you contact these payees to update their information to an exact match in the Supplier Hub to prevent future issues.
- No Match: The payment is deferred due to a mismatch. In the Tipalti Hub, when you hover on the payment, you'll see a tooltip with the deferred reason stating that Tipalti couldn't process it because the payee name doesn't match the name on the account.
Both you and the payee will receive an email notification about the deferred payment and we suggest that you contact the payee to update their name. Once the details match, you can submit a new payment to the payee.
Understanding the VoP status
Use this table to quickly understand what each VoP status means, whether the payee can be paid, and what actions you need to take.
| VoP status | Is the payee payable? | What it means | Action required |
|---|---|---|---|
| Full Match | Yes | The payee's name on file is an exact match with their bank account. | None. No action is needed. |
| Partial Match | Yes | The payee's name is a close but not an exact match. The payment can still be processed, but there is a risk of future errors or bank rejections. | 1. Users with payer admin permission will get an email with a list of partial match payees with payments in process. 2. Recommended to contact the payee and ask them to update their information in the Supplier Hub to a full match. |
| No Match | No | The payee's name does not match the bank account name. The payment will be deferred, and future payments will also be deferred until the payee has updated their information. | 1. You and the payee will be notified of a deferred payment due to a mismatch. 2. Resubmit the payment once the payee has corrected their information |
Common questions
Do I need to do anything to enable VoP?
No, Tipalti enables it automatically, so no system changes are necessary on your end. However, here are some best practices to ensure a smooth payment process:
- Proactive communication: Notify your EU payees in advance to confirm their account name details match their bank records.
Email template example
Here is an example email you can copy, customize, and send to payees with no match/partial match status.
Hi [Payee Name],
We noticed that the name on your bank account does not match the account name you provided in the Tipalti Supplier Hub.
Due to the new EU regulation, Verification of Payee (VoP), when you register or update your bank details in Tipalti, your payee name (individual or company) must match your bank account name.
What you need to do:
Please log in to the Tipalti Supplier Hub [please add your Tipalti Supplier Hub link] and ensure that your payee name matches exactly the name on your bank account. This will help avoid payment delays.
If you have any questions, please contact [Your Support Contact / Your Finance Team].
Thank you for your cooperation,
[Your Company Name]
- Regular review: Review the verification status updates provided by Tipalti regularly and contact payees for necessary corrections.
- Educate your team: Ensure your team understands the importance of VoP compliance and the steps to take for deferred payments.
- Update payee details: For both partial and no-match payees, it is suggested that you contact them to update their details in the Supplier Hub or iFrame. Payer admins will get daily emails with the list of partial matches with payments in progress.
Why is my payee's name considered a "partial match"?
Partial matches can occur for several reasons, such as a missing middle name, a misspelled name, or variations in a company's legal name. For example, a payee's name of "Tipalti, Inc." may be a partial match to "Tipalti" on their bank account. Similarly, a legal suffix like "Ltd." or "GmbH" can cause a mismatch if it's not entered exactly as it appears on the bank's records. For this reason, we always recommend an exact match to avoid any potential payment issues.
What if my payee's bank details are already in the system?
If a payee's details were entered before the VoP check was enabled on October 2025, their payment will be subject to a VoP check at the time of processing. The payment status will fall into one of the categories in the table above (Full, Partial, or No Match). The payee will receive an email notification if a mismatch is found.
Does the VoP check happen for every payment?
The final VoP check occurs automatically for every SEPA credit transfer you initiate to an EU-based bank account. This ensures that every payment meets regulatory standards.
What if my payee doesn't update their details?
A payment for a payee with a No Match status will remain deferred until the details are corrected. A payment for a Partial Match will still be processed, but we cannot guarantee that the receiving bank will process it. We recommend a full match for all payees to ensure a smooth payment process.