How real-time payee validation helps corporates stay compliant and prevent payment fraud
As the pace of payments accelerates and fraud becomes more advanced, the need for reliable, real-time payee verification has never been more urgent. Tactics like business email compromise (BEC), vendor impersonation, and payment redirection continue to create a complex and growing threat for organizations.
To address these challenges, the European Payments Council has introduced the Verification of Payee (VoP) regulation, effective October 2025. While this mandate applies to Payment Service Providers (PSPs) handling SEPA credit transfers, its implications will be felt across the entire corporate finance landscape. Companies that fail to verify payee details accurately may experience rejected payments, compliance issues, and significant operational disruptions.
Finance and treasury teams often face internal barriers—fragmented ERP systems, outdated vendor records, and manual verification processes—that make it difficult to confirm payee information before sending payments. These inefficiencies increase the risk of fraud and add to the burden of exception handling.
In fact, more than 70% of payment exceptions stem from formatting errors or invalid account details. These mistakes can lead to rejection rates as high as 30%, causing delays, financial penalties, reputational damage, and strained supplier relationships.
TIS addresses these issues head-on with an integrated solution for real-time account validation. Our technology verifies both vendor master data and payment transactions before funds leave your organization. By embedding these checks at key points—during vendor onboarding and prior to payment execution—TIS helps reduce fraud risk and boost payment accuracy.
Download the full whitepaper to see how TIS helps companies secure their payments, meet regulatory expectations, and improve operational efficiency through smarter verification.
