The European Payments Council’s (EPC) Verification of Payees (VOP) scheme has introduced new expectations around how Payment Service Providers (PSPs) validate account names before processing payments.
While the EPC VOP offers guidelines rather than strict rules, responsibility for the accuracy of matching outcomes rests with the Responding PSP.
This responsibility extends far beyond compliance:
- A poor match increases fraud liability
- False negatives create friction for customers
- False positives damage trust and reputation
As a result, name matching has become a strategic priority for banks, PSPs, and corporates alike.
The challenge with traditional approaches
Many legacy systems treat name matching as a “tick-box” exercise. They may rely on rigid rules, limited spelling variations, or simplistic phonetic checks. But the reality is more complex:
- Customers use multiple languages, cultural naming conventions, and nicknames.
- Corporate accounts may use trading names or aliases.
- Legacy systems often store account names in a single text field, with no separation between first and last name.
In practice, these limitations result in higher exception rates and manual investigations that slow down operations.
How Banfico sets a new benchmark
Banfico’s Advanced Name Matching is designed to meet the EPC VOP guidelines while offering PSPs the flexibility, configurability, and intelligence needed to keep pace with today’s demands.
Key differentiators include:
1. Configurable by operational teams
Most matching rules can be adapted directly through an intuitive graphical interface, so business and operations teams can fine-tune them without relying on IT. This flexibility reduces delays and puts control in the hands of those closest to the process.
2. Smart matching algorithms
Our solution recognises the realities of how names appear in practice. It accounts for alternate spellings (Aleksandre, Alejandro, Alessandro, Alexandre), common nicknames (Robert vs Bob, Elisabeth vs Elisa), and phonetic variations (Joseph vs Josef). It also uses configurable lists for honorifics and business descriptors, ensuring irrelevant tokens are ignored while meaningful ones are included.
3. Adaptable to complex scenarios
Beyond individual names, the algorithm supports legacy systems where first and last names are stored in a single field, joint accounts with multiple holders, commercial trade names and aliases, and specialist use cases such as invoice discounting.
4. Precision and continuous improvement
Banfico applies configurable Levenshtein Distance thresholds to distinguish between Match and Close Match outcomes in line with EPC VOP guidelines. Detailed reporting and analytics make it easy to interpret results, refine rule sets, and monitor accuracy. With dedicated support after go-live, PSPs can continuously improve match rates while reducing unnecessary exceptions.
Why It matters for your operations
Banfico’s approach focuses on delivering reliability, flexibility, and transparency. Our solution helps PSPs:
- Minimise false positives and false negatives.
- Reduce customer friction while meeting regulatory obligations.
- Scale across diverse geographies, languages, and customer demographics.
- Align with EPC VOP requirements while retaining freedom to optimise internally.
Put simply, Banfico turns name matching into a competitive advantage, not just a compliance task.
Ready to evolve your VOP strategy?
Implementing VOP name matching is more than a regulatory exercise. Done well, it becomes a competitive differentiator. Banfico’s solution combines deep regulatory expertise, technical sophistication, and adaptive flexibility, giving PSPs the confidence to scale with evolving market standards.
Our work across multiple schemes has shown us one consistent truth: effective name matching requires constant evolution. With Banfico, you gain not just a solution, but a partner who ensures your matching strategy remains aligned with the latest EPC guidance, operational needs, and customer expectations.
Get in touch with us
Whether you want to explore the details of the EPC VOP scheme, learn more about Banfico’s Advanced Name Matching, or simply see how our solution could fit your operations, we’d love to talk.
Get in touch with us at vop@banfico.com to discuss your testing requirements.