In a sector where transaction amounts frequently exceed €20,000, payment security is a priority. Automotive professionals - distributors, garages, dealerships - are on the front line when it comes to transfer fraud, particularly IBAN fraud.
To counter this scourge, a new measure has come into force throughout the SEPA zone: Verification of Payee (VoP) . This regulation aims to reinforce the security of bank transfers, and we tell you all about it in this article.
Why was VoP introduced?
In the automotive industry, IBAN fraud is a very real threat. A simple intercepted email, a falsified IBAN, and sometimes tens of thousands of euros disappear, unbeknownst to both customer and dealer.
In 2024, wire transfer fraud increased by 12% in value to reach €351 million, according to the 2024 annual report from the Payment Security Observatory.
To curb this trend, the European Payments Council has introduced a new framework: the Verification of Payee (VoP). Included in the European Instant PaymentsRegulation, this requirement took effect on October 9, 2025.
Its objective is clear: to automatically check that the beneficiary's name matches the IBAN indicated, in order to detect any anomalies and block fraud attempts before it's too late.
What exactly is VoP?
With VoP, each transfer must now go through a control stage: the bank checks that the name of the beneficiary entered corresponds to the name associated with the IBAN.
Customers are informed of the result before validating their transaction, enabling them to confirm, correct or cancel their transfer in full knowledge of the facts. In practical terms, there are four possible scenarios:
- Exact match: the name matches the IBAN → the transfer is executed.
- Mismatch: the name does not match the IBAN → the customer is alerted before validation.
- Partial match: the name is close, but not identical → the bank displays the real name linked to the IBAN, and the customer chooses whether or not to proceed.
- Verification impossible: in the event of a technical problem, or if the beneficiary's bank has not yet joined the scheme → the customer is warned and can decide to continue or abandon the transfer.
This verification applies to all SEPA credit transfers, whether issued by individuals, companies, public authorities or associations. It will be carried out systematically when a new beneficiary is added, but can also be applied to beneficiaries already registered.
What's at stake for automotive professionals?
For players in the automotive sector, Beneficiary Verification (VoP) is a major breakthrough: it significantly reduces the risk of IBAN fraud, a recurring threat in this vertical. (👉 See also our article on IBAN fraud in the automotive industry).
But this measure, while welcome, is not an absolute guarantee.
VoP is based on a comparison between the name entered by the payer and the legal name associated with the payee's IBAN. Problem: a fraudster may create a bank account with a name very close to that of the legitimate merchant, for example, "CONCESSION AUTO" instead of "CONCESSION AUTO SARL". In this case, the VoP may simply issue a partial match alert, easily ignored by a hurried or ill-informed payer. The risk of fraud therefore persists.
In sensitive sectors such as the automotive industry, where high amounts are involved, simply using VoP is not enough. The safest way is to avoid sharing IBANs by email or PDF, in favor of secure payment solutions.
How can we anticipate new fraud risks?
To secure your transactions effectively, it's essential to use payment solutions designed specifically to counter IBAN fraud. That's exactly what Fintecture has developed for the automotive sector: two fully secure transfer payment solutions that eliminate the risks associated with IBAN sharing. Here's how they work:
1. Do not expose your IBAN
At Fintecture, we have designed the Intelligent Transfer with a virtual IBAN, unique and dedicated to each payer. This IBAN is automatically generated and can only be used to collect funds. It is never communicated by email or PDF, thus eliminating the main vector of fraud.
We reinforce this protection with a double security system:
- Send an informative SMS to the payer, telling him that you will never share IBANs by email.
- Payers are redirected to a secure interface, accessible via a code received by SMS, where they can copy and paste the virtual IBAN in total security.
This device avoids any confusion linked to manual entry, and reduces potential VoP alerts by guaranteeing a perfect match between name and IBAN.
2. A 100% safe route
As a payment institution approved by the Banque de France and supervised by the ACPR (n°17248), Fintecture carries out a systematic identity check (KYC) when each merchant account is opened.
This control enables upstream validation of the match between the beneficiary's identity and the IBAN used. As a result, no additional verification is required at the time of payment, avoiding the friction associated with VoP and guaranteeing a smooth customer experience.
Our Immediate Transfer solution, based on Open Banking, rests on three pillars:
- No IBAN entry: the customer selects his or her bank, and the form is automatically pre-filled.
- End-to-end secure transaction: the merchant's identity has already been validated.
- Eliminate errors and fraud: no more IBANs transmitted by email or telephone, and no IBAN entry for the payer.
VoP and Digital Payments: Calculate Your Benefits
Compliance with the VoP is mandatory. But the real question is: how much is your non-digitized payment process still costing you today? Credit card fees, check processing, vehicle downtime, reconciliation time…
Use our automotive ROI simulator to get a personalized estimate in just a few minutes of how much you could save by securing your payments with Fintecture. Dealers, automotive groups, and distributors can thus measure the actual benefit before taking the plunge.
In conclusion
VoP is a welcome step forward, but it does have its limitations, which fraudsters already know how to exploit. In high-stake sectors such as the automotive industry, it is crucial not to rely solely on this verification, but to secure the entire payment chain.
With Fintecture, you combine compliance, operational efficiency and peace of mind, thanks to a suite of fully secure money transfer solutions perfectly tailored to your business requirements.
Our payment experts will be happy to talk to you about our bank transfer solutions.
