Ensure your invoice payment is processed smoothly despite an online banking warning –The effect of the Verification of Payee regulation on UKKO Entrepreneurs

Verification of Payee (VoP) is a new European regulatory initiative designed to improve payment security and prevent fraud. It enables banks to verify that the payee’s name and account number (IBAN) match before a payment is processed.

In practice, this means that when a customer pays your invoice, their bank may display a warning if the payee name on the invoice does not match the account holder’s name. However, the payment can still be completed despite the warning.

If you want to ensure that paying your invoices is smooth for your clients and avoids any confusion, we recommend opening a separate business account for your private tradership. UKKO Business Acount offers an affordable option, allowing you to manage and pay invoices directly within the UKKO Entrepreneur service.

If you continue invoicing to your personal bank account, you may need to inform your customers that they can safely complete the payment to the account number shown on your invoice, even if their online bank displays a warning.

Banks may implement the Verification of Payee checks in slightly different ways. If you are unsure, please contact your bank to confirm how VoP affects your personal or business account.

How might VoP changes affect your customers?

If the name and account number do not match:

• Your customer will receive a warning before completing the payment.
• The customer may suspect fraud and choose not to make the payment.
• Invoice payments may be slowed down or delayed.