Payments
Updated On 22 March 2025 | Min(s) read

Introduction to Verification Of Payee

Verification of Payee (VOP) is a service offered by the central authorities in various regions, to confirm the payer that the money will be credited to the intended beneficiary. Verification of Payee is growing popular across various regions, and the regulatory mandates verification of payee must be done before a payment is processed.

Banks in the European region mandatorily performs verification of payee for SEPA payments. Similarly, banks in the UK region mandatorily must perform verification of payee for domestic payments.

The user must have an option to perform verification of payee during the below process:

  • Beneficiary creation
  • Capture of standing order instruction
  • Payment initiation

The diagram below depicts the overall view to support verification of payee in Transact.

Central Component

The Central component supports verification of payee from,

  • Transact applications
  • Non-Transact applications through an API

Central Component

The Central Component module is an interface between Transact applications such as Payment Order, Order Entry, Beneficiary, Standing Order applications and the adapter that connects to the VOP service provider. VOP service provider matches the payee name or payee identification and responds with the matching result.

The Central Component,

  • Maintains VOP configuration, to setup VOP as mandatory or optional for a region.
  • Set up response codes received from the VOP service provider and corresponding generic error or override messages. Read Configuration section for more details.
  • Sends a VOP request to the adapter and receives VOP response from the adapter for all the records that are required to perform VOP.
  • Stores the details of VOP requests and responses. The user can view the details of VOP requests and responses through an enquiry.
  • Sends VOP response back to the source system. Upon committing on the respective application, the user can view the details of failure, if any.

The Verification of Payee (Central Component) feature is available under the license PPVOFP.

The Central Component does not support the reachability check of the beneficiary bank for VOP and determines the VOP service provider.

Temenos Adapter

The Temenos Adapter receives the required data for VOP check from the central component and exchanges VOP request and response with the VOP service provider.

Temenos Adapter,

  • Finds the appropriate VOP service provider
  • Establishes connection with the VOP service provider
  • Sends VOP request in the specified format
  • Receives VOP response from VOP service provider and
  • Sends back the response to the central component.
Temenos Adapter is not a part of the central component license.

Verification of Payee

The verifying the payee can be performed from the following applications in Transact:

  • Registering beneficiary using BENEFICIARY (GUI)
  • Initiating a payment from PAYMENT.ORDER (GUI)
  • Initiating a payment from PP.ORDER.ENTRY (GUI)
  • Initiating a payment (transaction) from FT.BULK.MASTER (bulk manual capture screen)
  • Creating a standing order instruction from STANDING.ORDER (GUI)
Verification of payee is performed only for outward customer transfers that are initiated from the above payment initiation applications.

While registering beneficiary or initiation a payment or creating a standing order instruction, user has an option to choose to perform VOP or skip VOP. Options available are:

  • Yes - Performs VOP
  • No - Skips VOP (allows when verification of payee is optional or not required for a region)
  • Retry - Retries VOP when the previous check failed due to time out.

VOP responses

The possible responses received as a result of the verification of payee process are

  • Full Match - Payee name or identification is a full match with a success result.
  • Partial Match or Close Match - Payee name is a partial match with a close match result. The user may either correct the name or continue the payment with the given name.
  • No Match - Payee name or identification is no match with a failure result. The user may either correct the name or abort the payment or continue the payment with the given name.
  • Not Applicable - Payee name or identification is not applicable with a failure result. The user may either abort the payment or continue the payment with the given name.

According to the responses, VOP status in the VOP enquiry is updated as Success, Close Match, Fail, Time Out (when a response is received as time out), Partial Success (when the user auto updates the name for a close match result).

VOP in Transact Applications

When the user performs a VOP, the Transact applications such as PAYMENT.ORDER, PP.ORDER.ENTRY, FT.BULK.MASTER, BENEFICIARY and STANDING.ORDER triggers the central component. The Central Component receives the beneficiary and beneficiary bank details, validates the details against the VOP configuration and sends a request to the VOP service provider.

When the system receives the response, the user can view the details of the response, including the VOP status and verification date.

To perform verification of payee it is mandatory to provide basic information such as payee account number, payee bank bic, payee name, destination country, payment order product.

  • Verification of payee primarily supports to EU region.
  • Banks must add Check VOP in their customized versions (other than mentioned in each of the application below) along with PPVOFP license, to support verification of payee in Transact applications.

In Transact applications, the user can choose whether to perform, skip, or retry the VOP when a timeout response is received. When the system performs the VOP, the central component emits an IF event with the payee's details, payee bank information, and other relevant data. Below are the VOP request data through IF event, and VOP response data from Adapter.

S. No.

Field in IF event

Field in Central Component

1

productId

Product ID

2

payeeBankCountry

Payee Bank Country

3

paymentCurrency

Payment Currency

4

requestDateTime

Created Date

5

requestId

@ID of VOP Enquiry table

6

customerReference

Customer Reference

7

payeeName

Payee Name

8

payeeBic

Payee BIC

9

payeeLei

Payee LEI

10

payeeOtherId

Payee Other ID

11

payeeOtherIdSchemeCode

Payee Other ID Scheme Code

12

payeeOtherIdSchemeProprietary

Payee Other ID Scheme Proprietary

13

otherIdIssuer

Other ID Issuer

14

payeeIBAN

Payee IBAN

15

payeeAccountNumber

Payee Account Number

16

payeeBankBIC

Payee Bank BIC

17

payeeBankClearingSystemId

Payee Bank Clearing System ID

18

payeeBankClearingMemeberID

Payee Bank Clearing Member ID

19

payerBankBIC

Payer Bank BIC

20

additionalInformation

Additional Information

 
<?xml version="1.0" encoding="UTF-8"?>
<tns:sendRequestForVerificationOfPayee xmlns:tns="http://www.temenos.com/T24/event/PayeeVerificationService/sendRequestForVerificationOfPayee" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.temenos.com/T24/event/PayeeVerificationService/sendRequestForVerificationOfPayee PayeeVerificationService-sendRequestForVerificationOfPayee.xsd" xmlns:ns0="http://www.temenos.com/T24/event/Common/EventCommon" xmlns:ns1="http://www.temenos.com/T24/PayeeVerificationService/ReqResponseDetails">
	<tns:eventCommon>
		<ns0:application>PPVOFP.VERIFY.PAYEE.REQ.RESPONSE</ns0:application>
		<ns0:companyId>GB0010001</ns0:companyId>
		<ns0:operator>INPUTTER</ns0:operator>
		<ns0:today>2025-04-15</ns0:today>
		<ns0:transactionStage>SERVICE-OPERATION</ns0:transactionStage>
		<ns0:eventId>3716001a-a4b6-4d3e-8346-a5b2dd6cdd83</ns0:eventId>
		<ns0:creationTime>2025-03-08T06:10:08.024Z</ns0:creationTime>
		<ns0:customCommon name="timeInLocal">2025-03-08T11:40:08.024 Asia/Calcutta</ns0:customCommon>
	</tns:eventCommon>
	<tns:ireqresponsedetails>
		<ns1:requestId>BNK-11215.5-1741414208.009</ns1:requestId>
		<ns1:customerReference>100343</ns1:customerReference>
		<ns1:productId>DOMESTIC</ns1:productId>
		<ns1:payeeAccountNumber>123456</ns1:payeeAccountNumber>
		<ns1:payeeIBAN>GB89370400440532013000</ns1:payeeIBAN>
		<ns1:payeeName>BANU</ns1:payeeName>
		<ns1:payeeBankBIC>MIDLGB22</ns1:payeeBankBIC>
		<ns1:payeeBankClearingMemeberID>ATBLZ</ns1:payeeBankClearingMemeberID>
		<ns1:payeeBankClearingSystemId>AT</ns1:payeeBankClearingSystemId>
		<ns1:payeeBankName>DEMOGBPX</ns1:payeeBankName>
		<ns1:payeeBic>BARCGB22</ns1:payeeBic>
		<ns1:payeeLei>LE2683HNDOPOR</ns1:payeeLei>
		<ns1:paymentCurrency>EUR</ns1:paymentCurrency>
		<ns1:payerBankBIC>DEMOGBPXA</ns1:payerBankBIC>
		<ns1:payeeOtherId>123557</ns1:payeeOtherId>
		<ns1:payeeOtherIdSchemeCode>SCHEME CDE</ns1:payeeOtherIdSchemeCode>
		<ns1:otherIdIssuer>ISSUR</ns1:otherIdIssuer>
		<ns1:payeeBankCountry>GB</ns1:payeeBankCountry>
		<ns1:requestDateTime>20250308114008008</ns1:requestDateTime>
	</tns:ireqresponsedetails>
</tns:sendRequestForVerificationOfPayee>

S. No.

Field in IF event

Field in Central Component

1

requestId

Request ID

2

partyNameMatch

Response Code

3

partyIdMatch

Response Code

4

matchedName

Matched Name

 
<VopResponse>
	<requestId>BNK-11215.5-1741414208.009</requestId>
	<partyNameMatch>MTCH</partyNameMatch>
	<matchedName>BANU</matchedName>
</VopResponse>

Temenos Adapter consumes the IF event and generates VOP request to send it to the VOP service provider.

Temenos Adapter is not in scope of this document.
If banks use any other third party adapter, then banks must ensure that the third party adapter consumes the VOP request emitted by the Central Component. Similarly, the third party adapter should send response in the same format that the central component accepts.

VOP is either performed or not performed depending on user choice in Check VOP against the VOP configuration. The below table describes the system behavior for various combinations of user's choice and VOP configuration.

Check VOP

VOP Configuration

System Behavior

Yes

Mandatory

Performs VOP

No

Mandatory

Performs VOP regardless of user's choice.

Check VOP is updated automatically as Yes as VOP is performed.

Yes

Optional

Performs VOP

No

Optional

Doesn't perform VOP

Yes

No configuration

Doesn't perform VOP

No

No configuration

Doesn't perform VOP

The below table describes various options available for the user to proceed with the payment initiation or beneficiary creation, when a VOP response is received.

Result

Status

Reason Code as Error/Override

Possible User Action

Full Match

Success

-
  • Payment initiation or beneficiary creation continues automatically.
  • No user action required unless payment initiation requires approval by authorizer.

Partial Match

Close Match

Override
  • Correct the payee name manually and perform VOP again with the corrected name.
  • Accept close match to auto correct the name and continue with the payment initiation or beneficiary creation. VOP Status is updated as Partial Success.
    • Accept close match is not applicable for BENEFICIARY and STANDING ORDER
  • Continue the payment or beneficiary creation with the inputted name by accepting the override. VOP is not performed when user accepts the override. Check VOP is updated automatically as No as user skips the VOP.
  • Abort the payment or delete the beneficiary record.

No Match

Fail

Error
  • Correct the payee name and perform VOP again with the corrected name.
  • Abort the payment or delete the beneficiary record.

No Match

Fail

Override
  • Correct the payee name manually and perform VOP again with the corrected name.
  • Continue the payment or beneficiary creation with the entered name by accepting the override. VOP is not performed when user accepts the override. Check VOP is updated automatically as No as the VOP is skipped.
  • Abort the payment or delete the beneficiary record.

Time Out

Time Out

Error
  • Retry VOP by selecting check VOP as Retry. VOP is performed again with the existing details. Check VOP is updated as Yes as VOP is performed.
  • Abort the payment or delete the beneficiary record.

Time Out

Time Out

Override
  • Retry VOP by selecting Check VOP as Retry. VOP is performed again with the existing details. Check VOP is updated as Yes as VOP is performed.
  • Continue the payment or beneficiary creation with the inputted name by accepting the override. VOP is not performed when user accepts the override. Check VOP is updated automatically as No as VOP is skipped.
  • Abort the payment or delete the beneficiary record.

The user can perform VOP from the initiation screens or instruction screen when payment is initiated or standing order instruction is created using beneficiary ID.The user is informed that the verification of Payee is completed for the beneficiary, along with the current status. The user can decide to validate again or skip VOP during payment initiation or instruction creation. The user must use Check VOP to either validate again (with Yes option) or skip VOP (with No option).

When validated again, VOP status and VOP date are not updated back to BENEFICIARY.

Based on the results, the user is applicable for the below options:

  • Success - Payment or instruction continues further
  • Failed – The user must correct beneficiary in BENEFICIARY and re-initiate payment
  • Close Match – The user can continue further with the inputted name (when response is configured as override)
  • Time Out – The user can retry VOP
When payment order is configured to override beneficiary details, then the user can amend the payee name and continue with the updated name upon close match or failure result. The modified name is retained only for the payment where the user has amended the payee name.

The user can re-validate the verification of payee for the already verified beneficiary. This enables the users to keep the verification of payee check up-to-date.

The user can either choose Yes in Check VOP (when beneficiary details are modified) or Retry in Check VOP (when there is no change in beneficiary details other than VOP check) to re-validate verification of payee.

In BENEFICIARY , the user must choose Yes in Check VOP to perform VOP again if user is modifying one of the below fields:

  • ACCT.WITH.BANK.COUNTRY
  • PAYMENT.CCY
  • PREF.PYMT.PRODUCT
  • BEN.ACCT.NO
  • IBAN.BEN
  • NAME.1 NAME.2
  • BENEFICIARY.LEI
  • BENEFICIARY.OT.ID
  • BENEFICIARY.SCHME.CDE or BENEFICIARY.SCH.PRTY

In this case, the updated details are used for verification of payee.

The user must choose Retry option in Check VOP to re-validate VOP when beneficiary details are not modified. In this case, existing details are used for verification of payee.

When VOP is re-validated, then Check VOP is automatically updated as Yes as VOP is performed. Verify Payee Status and Verify Payee Date and Time in BENEFICIARY are updated with the re-validated results.

Verification of payee request is sent from central component as a master data set, where Temenos Adapter uses only the relevant data (a subset) to send it to the VOP service provider.

The details of VOP request from the central component and its relevant mapping from Transact applications are given below.

S. No. Fields in CC Fields from BY Application Fields from PO Application Fields from OE Application

Fields from STO Application
1

Request ID

BY Record ID

PO Record ID

OE Record ID

STO - Record Id

2

Customer Reference

CUSTOMER.REF

END.TO.END.REFERENCE

RelatedReference

DEBIT.CUSTOMER

3

Company ID

Logged in company ID

Logged in company ID

Logged in company ID

Logged in company ID

4

Source

BY

PO

OE

STANDING.ORDER

5

Product ID

PREF.PYMT.PRODUCT

PAYMENT.ORDER.PRODUCT

-

PO.PRD.NAME

6

Transfer Type

CT

CT

CT

-

7

Payee Account Number

BEN.ACCT.NO

BENEFICIARY.ACCOUNT.NO

If BeneficiaryAccount is not IBAN, then map to this field

BEN.ACCT.NO

8

Payee IBAN

IBAN.BEN

BENEFICIARY.IBAN

If BeneficiaryAccount is an IBAN, then map to this field

IBAN.BEN

9

Payee Name

NAME.1+<space>+NAME.2

BENEFICIARY.NAME

BeneficiaryName

BEN.NAME / BENEFICIARY - Based on the value availability.

10

Payee ID

BY Record ID

BENEFICIARY.ID

BeneficiaryID

BENEFICIARY.ID

11

Payee Bank BIC

ACCT.WITH.BANK

ACCT.WITH.BANK.BIC

AccountWithInstIdentifierCode

ACCT.WITH.BANK ( If it starts with 'SW-') 

If blank, use IBAN.BIC

12

Payee Bank Clearing Member ID

ACCT.WITH.BK.SORT.CODE

ACCT.WITH.BANK.CLEARING.CODE

AccountWithInstClrsysMmbid

ACCT.WITH.BANK.CLEARING.CODE

13

Payee Bank Clearing System ID

CLEARING.TYPE

ACCT.WITH.BANK.IDENTIFIER

AccountWithClearingSystemIdCode

ACCT.WITH.BANK.IDENTIFIER

14

Payee Bank Name

BK.NAME.1+<space>+BK.NAME.2

ACCT.WITH.BANK.NAME

AccountWithInstName

ACCT.WITH.BANK (First Multivalue contains the Bank Name if its not BIC)

15

Payee Bank Country

BK.COUNTRY

ACCT.WITH.BANK.COUNTRY

AccountWithInstCountry

ACCT.WITH.BANK.COUNTRY

16

Payee BIC

BEN.CUSTOMER.BIC

BENEFICIARY.BIC

BeneficiaryIdentifierCode

BENEFICIARY.BIC

17

Payee LEI

BENEFICIARY.LEI

BENEFICIARY.LEI

CreditorLEI

BENEFICIARY.LEI

18

Payment Amount

PREF.PYMT.AMOUNT

PAYMENT.AMOUNT

TransactionAmount

CURRENT.AMOUNT.BAL

19

Payment Currency

PAYMENT.CCY

PAYMENT.CURRENCY

TransactionCurrency

CURRENCY

20

Payer Bank BIC

Company BIC

Company BIC

Company BIC

Company BIC 

21

Additional Information

No Mapping

No Mapping

No Mapping

No Mapping

22

Verify Payee Status

VERIFY.PAYEE.STATUS

No Mapping

No Mapping

No Mapping

23

Direction

No Mapping

No Mapping

Direction

No Mapping

24

DomesticInternational

No Mapping

No Mapping

No Mapping, CC derives the value

No Mapping

25

Payee Other ID Type 

BENEFICIARY.OT.ID.TYPE (only Organisation is fetched)

BENEFICIARY.OT.ID.TYPE (only Organisation is fetched)

No Mapping

BENEFICIARY.OT.ID.TYPE

26

Payee Other ID 

BENEFICIARY.OT.ID

BENEFICIARY.OT.ID

CrdOrgIdOthId

BENEFICIARY.OT.ID

27

Payee Other ID Scheme Code

BENEFICIARY.SCHME.CDE

BENEFICIARY.SCHME.CDE

CrdOrgIdOthSchCd

BENEFICIARY.SCHME.CDE

28

Payee Other ID Scheme Proprietary

BENEFICIARY.SCH.PRTY

BENEFICIARY.SCH.PRTY

CrdOrgIdOthSchProp

BENEFICIARY.SCH.PRTY

29

Other ID Issuer

BENEFICIARY.SCH.ISSUR

BENEFICIARY.SCH.ISSUR

CrdOrgIdOthIssuer

BENEFICIARY.SCH.ISSUR

VOP in Non-Transact Applications

The Non-Transact applications (such as channels) make use of the central component to perform VOP checks. Below are the details of API to handle VOP by the central component.

  • Channels must fetch the VOP configuration through a GET API.
  • Channels must apply VOP configuration for a payment initiated in the channel and if a VOP check is applicable, then send a request to the central component through a POST API.
  • Channels must fetch the VOP response through a GET API.
The central component uses the VOP request to send requests to the Adapter. If the VOP request is received through an API, the other functions such as validations, apply VOP configuration, and so on are not applicable.

Below is the list of API's that can be used to integrate with the Central Component:

API Name API Description
VOP Configuration Fetches the configuration of verification of payee
VOP Request Sends verification of payee request to the central component
VOP Response Fetches the verification of payee response from the central component

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Published on :
Tuesday, September 2, 2025 1:39:19 PM IST