Within the framework of European legislation, Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant payments in euro, introduced a new obligation for payment service providers, namely obligation to offer a payee verification service in the case of SEPA payments.
How does verification work?
Before sending a payment, the bank or other payment service provider will verify that whether the recipient's name matches the name of the specified recipientVerification will take place immediately after the recipient details are entered, before the payment can be authorized.
Payee verification will significantly increase the security of payments, as it will help detect discrepancies between the entered data and the actual account owner. This will prevent situations where a payment is sent to the wrong recipient.
When does the obligation to verify the payee come into effect?
The above obligation has been in force for payment service providers in euro area countries since October 9, 2025.
For European Union member states whose currency is not the euro – including Czech Republic – this obligation will come into effect 9. July 2027.
In view of the above, it is necessary to mention that although the obligation will only apply to Czech banks and other payment service providers from 2027, it can be expected that some institutions may provide the service due to the close connection with the payment market in the euro area. recipient verification introduced earlier on a voluntary basis.
Do you need advice on choosing the right payment method for your business, verifying the recipient of the payment, or any other financial law question? Don't hesitate to contact us. contact.
