Urgent: EPC Verification of Payee (VoP) Scheme Opt-out Deadline Approaches

At iPiD, we help payment service providers (PSPs) and financial institutions stay ahead of fraud with globally trusted Know Your Payee (KYP) solutions, ensuring secure and accurate payments in an evolving financial landscape.?

Why This Matters?

The VoP Scheme is designed to help PSPs comply with the updated SEPA Regulation and enhance payment safety and security across SEPA by verifying payee details before transactions are processed.??

All SEPA Credit Transfer (SCT) and SEPA Instant Credit Transfer (SCT Inst) scheme participants will automatically be enrolled in the VoP Scheme starting October 2025, regardless of geographical location within SEPA. This will result in automatic invoicing of participation fees for the VoP Scheme and EPC Directory Service (EDS).?

However, scheme participants may formally opt out by 31 January 2025 if they consider that the regulatory obligation doesn’t apply to them.??

Key Deadlines and Requirements?

Important Dates:?

• 31 January 2025: Final date to submit a formal opt-out notification to the EPC.?

• February 2025: EPC will invoice all scheme participants who have not opted out for the 2025 VoP scheme participation fee and EDS setup fee.?

• October 2025: Mandatory adherence to the VoP Scheme begins.?

Key Requirements:?

1. Automatic Invoicing for Non-Respondents:?Participants who do not formally opt out by 31 January 2025 will be invoiced for the full 2025 fees, irrespective of when they join during the year.?
2. Opt-Out Declaration:?To avoid invoicing, participants must submit an official opt-out form to the EPC, including a reason for opting out.?
3. Initial Funding Period:?Participants must fund the VoP scheme and EDS for an initial three-year period to ensure cross-border interoperability and compliance with the updated SEPA Regulation.?
4. Full Payment Requirement:?Scheme participants must pay the 2025 fees upfront to be included in the Register of VoP Scheme Participants and EDS.?

Are You Eligible for an Opt-Out???

The VoP Scheme offers significant benefits in reducing payment fraud, improving accuracy, and ensuring compliance across SEPA. However, participants need to act quickly to ensure their preferences are accounted for:?

1. Review the EPC Notification:?Check the email sent by the EPC on 3 December for the official opt-out notification form and further details.?
2. Reach out to iPiD if you are unclear on your possibility to opt-out?: There may be several reasons to opt-out, including your location outside of the Eurozone, the fact that you do not operate a “payment account”, or your plans to only support remittances or payments settled via large value payment systems. Reach out to us if you want to talk to experts!?
3. Submit Your Decision:?If you do not plan to adhere to the scheme in 2025, complete the opt-out form by 31 January 2025 close of business.?
4. Prepare for Integration:?If you plan to participate, ensure you’re ready to incorporate VoP into your operational workflows.?

Why iPiD Is Here to Help?

iPiD offers robust tools and expert support to help PSPs, businesses, and institutions navigate the transition to the EPC VoP Scheme. From scheme expertise to integration strategies, we ensure your organisation remains compliant, secure, and efficient in this new era of payment verification.?

IPiD is listed with the EPC as a compliant Routing & Verification Mechanism (RVM). This means we’re ready to help you adhere to the SEPA scheme changes and ensure your compliance with the new payment regulation.?

Contact us today to learn more about how we can help you prepare for the EPC Verification of Payee Scheme. Don’t let the deadline pass—ensure your compliance and readiness for 2025.?

Drop us a message or email us at [email protected]

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