Drawing from Banfico’s extensive implementation experience of Confirmation of Payee (CoP) and Verification of Payee (VOP) account verification services across multiple markets, we present ten essential best practices for VOP participants.
1. EPC Communications Management
Effective scheme operator (EPC) communication tracking requires:
- Regular monitoring of EPC portal updates
- Subscription to PSMB bulletins (contact: psmb@epc-cep.eu)
- Prompt review/response to EPC communications and events
2. Prioritising Channel Integration
While many Payment Service Providers (PSPs) focus primarily on digital channels, successful VOP implementation demands a comprehensive approach across all banking touchpoints. Early prioritization of both online and offline channels (including branch and telephone banking) is crucial for optimizing customer experience and ensuring seamless integration.
3. VOP Bulk Payment Processing
Your bulk payment strategy should address:
- Seamless VOP verification within existing payment workflows
- File format standardization and compatibility
- Response handling protocols for no-match and unable-to-match scenarios when dealing with bulk checks
- Integration with current payment instruction pre-validation processes
4. Build vs Buy Decision Framework
Key considerations include:
- VOP scheme, EDS integration, and RVM may require agile ongoing implementation
- EPC’s EDS delivery timeline constraints
- Potential benefits of partnering with experienced vendors
5. Scheme Participation Model Selection
Evaluate your participation path:
- Direct EPC VOP scheme participation
- Indirect participation via Qualified-RVM (recommended based on market experience)
6. Name Matching Framework
Develop a sophisticated and customizable name-matching framework that:
- Aligns with your institution’s risk appetite
- Accommodates specific customer demographics
- Undergoes rigorous testing with production-quality data
7. eIDAS Certificate Management
Certificate procurement should:
- Consider logistics in getting a legal representative to authorize the certificate procurement
- Generally, it takes about 2-6 weeks
- Consider expedited services through authorized agents like Banfico (who could procure Production & Test Certificates in a week’s time)
8. Customer Communications
Develop comprehensive customer communications that includes:
- Updating privacy policies and terms & conditions
- Clearly explaining VOP implementation impacts
- Providing guidance for both payer and payee roles to minimize payment transaction friction
9. Project Compliance Management
Key compliance considerations include:
- Instant Payments Regulation (IPR) regulatory compliance review
- Data privacy impact analysis (DPIA)
- Information security controls (ISO 27001)
- Operational resilience (DORA requirements)
- EPC VOP self-certification
10. Service Management Framework
Establish robust post-go-live operational procedures covering:
- Inbound & outbound connection monitoring
- Clear support model delineation between PSP & RVM
- RVM-PSP responsibility matrix
- Ongoing operational management protocols
Let us Connect!
Want to know more about how we can help you implement the VOP best practices? Please contact our expert team, or join us in one of our breakfast events across Europe this February.
Banfico periodically sends newsletters on various topics related to EPC Verification of Payee implementation. Visit this page to read the previous newsletters.