SEPA

Verification of Payee, then instant transfer

Before an instant euro transfer can settle, the payer's bank checks the payee's name against the account and warns the payer if it does not match — then, on a match, the payment settles in seconds.

Contributor Shubham Mathure14 July 2026

PAYMENTS SIGNAL · REFERENCE CARD

Actors

Riya (payer)customer
Bank Alfa (payer PSP)bank
TIPS (instant settlement)infrastructure
Nordbank (payee PSP)bank
Arjun (payee)customer

Messages

VoP request
VoP response
pacs.008

The sequence

#	Step	Route	Kind
1	Enter payee — Riya sets up the payment	Riya → Bank Alfa	message
2	VoP request — Bank Alfa asks Nordbank to verify the name	Bank Alfa → Nordbank	message
3	VoP response — Nordbank returns the check result	Nordbank → Bank Alfa	message
4	MATCH shown — A match is shown and Riya confirms	Bank Alfa → Riya	message
5	DR Riya — Bank Alfa debits Riya	Bank Alfa	posting
6	pacs.008 — Bank Alfa submits the instant transfer	Bank Alfa → TIPS	message
7	Instant settlement — The banks settle in central bank money	Bank Alfa → Nordbank	settlement
8	CR Arjun — Nordbank credits Arjun within seconds	Nordbank	posting

Exception rails

Rail	Trigger	Where the money ends up	Next action
Close match: name differs slightly	The VoP result is CLOSE MATCH — the name Riya typed is close to, but not exactly, the name registered on Arjun's account.	Never left Riya's account — she paused before confirming. · No settlement occurred; the payment was never authorised.	Riya — Riya checks the exact registered name with Arjun, then resubmits if it is correct.
No match: payer abandons	The VoP result is NO MATCH — the name Riya typed does not match the name on the account behind the IBAN.	Never left Riya's account — she abandoned before authorising. · Nothing settled; no interbank movement was ever submitted.	Riya — Riya confirms Arjun's correct IBAN before trying again; nothing needs to be unwound.