Name matching is an important component of the European Payments Council (EPC) Verification of Payee (VOP) scheme, validating payee information before the payments are processed.
Its accuracy directly impacts PSP’s fraud liability, customer experience, regulatory compliance, and market reputation, making it a strategic priority for payment operations
EPC VOP name-matching requirements
Unlike other schemes like PayUK CoP in the UK, Nordic Payment Council’s CoP, and SEPAmail DIAMOND where prescriptive name-matching rules are defined, the EPC VOP has only published guidelines.
Here’s what you need to know about the EPC VOP Scheme guidelines for name matching:
The Responding PSP is liable for matching outcomes while having the freedom to choose its matching algorithms. It must support VOP Scheme Rulebook response types: Match (MTCH), No Match (NMTC), Close Match (CMTC), and Can’t Match (NOAP).
While the scheme’s objectives centre around user-friendliness, friction reduction, and increasing match rates, it focuses on the following key areas:
- Clear data cleansing guidelines and data consolidation across all data sources (eg. Core banking systems, CRM, ERP)
- Specific scenarios for Match and Close Match responses
- Defined parameters for “Small Deviations” that can trigger Close-Match responses
The goal is to minimise “No Match” responses while maintaining accuracy and consistency across the system. This approach balances PSP autonomy with standardised responses, letting each PSP optimise their matching strategy while following common response protocols.
What effective name matching means
It is a myth that higher match rates imply better algorithm efficiency. Matching effectiveness depends on factors such as data quality, customer demographics, risk appetite of PSP, the types of accounts involved, and the matching algorithm’s precision.
Instead of focusing only on match rates, an effective name-matching solution does the following:
- Eliminates false positives (which create liability) and false negatives (which create friction)
- Handles multiple languages, diverse customer demographics, and varying data quality
- Supports business rule configuration for titles, entity types, nicknames, edit distance, etc.
- Align with EPC name-matching goals
- Includes robust data cleansing and localisation capabilities
- Includes careful application of fuzzy logic techniques such as phonetic matching, tokenisation, edit distance etc.
Name-Matching Game
Banfico has been an expert at name matching, having worked in different regional scheme implementations.
Try our interactive name-matching game to experience the difference.
How Banfico can help?
Implementing VOP name matching is a complex undertaking that demands expertise across technical, legal, and business dimensions. An efficient name matching requires an adaptive approach that considers your unique customer demographics, risk appetite, and operational needs.
Drawing on our experience with name-matching algorithms across multiple schemes—from SEPAmail DIAMOND to PayUK CoP and NPC CoP—we’ve learned that one size doesn’t fit all.
Our solution evolves with your needs, backed by:
- Deep expertise across major account verification schemes
- Live market experience with diverse demographics
- Advanced VOP Analytics for continuous improvement
- Customizable rule parameters
Transform your VOP compliance into a competitive advantage. Let’s discuss your implementation journey.
Also, register at our webinar this Thursday to hear more from the industry experts
