IBAN-Name Check Adoption Gains Traction after Legislative Changes
The European Commission has reached an agreement regarding Instant Payments in Europe. This makes payments to consumers and businesses more secure, faster and easier to process.
To achieve this, making an IBAN-Name Check mandatory is an important part of the legislation.
What is the IBAN-Name Check?
IBAN-Name Checks help to increase trust and security in instant payments by making it easy for payers to verify if the name entered as the beneficiary of an instant payment matches the name of the account holder to which the payment is being sent. It works through the use of a sophisticated algorithm that matches the payee name entered by the payer against the account holder data registered by the payee’s bank using the associated IBAN.
IBAN-Name Checks notify the individual making a payment to another account if the provided beneficiary’s name deviates from the name of the account holder. This leads to both an optimal customer experience and the greatest possible protection against fraud and misdirected payments.
IBAN-Name Check has been shown to:
The Legal Position
Although the implementation of an IBAN-Name Check solution has been optional for banks for quite some time, The European Commission has now mandated the IBAN-Name Check, and other safeguards for Payment Service Providers (PSPs).
Banks and PSPs that offer Instant Payments cannot afford to wait to begin reviewing their readiness.
SurePay IBAN-Name Check for Banks and PSPs
At SurePay, we’ve seen the adoption of IBAN-Name Check solutions gain traction in recent months as more banks and PSPs seek to safeguard their operations to get compliant with the Instant Payments legislation.
Bridget Meijer, Manager New Markets: “As the inventor and pioneer of the IBAN-Name Check solution, SurePay’s experience and technical expertise in rolling out our technology across the EU puts us in a position to offer a quick, frictionless, and best-in-class implementation for regulated financial institutions.”
“More than 6,5 Billion checks have been performed, leading to an up to 80% decrease in instances of impersonation fraud and misdirected payments. Get started now to protect your customers, reduce operational costs, and ensure timely compliance with the Instant Payments legislation.”
It pays to get started now!