Verification of Payee for CFOs: How VoP Transforms Financial Risk Management

Strategic insights 9 min read

€47 million lost to one fraud. Could VoP have prevented it?

That’s what a single invoice redirection scam cost a German manufacturing firm last quarter. The CFO approved what looked like a normal supplier payment. Valid IBAN. Familiar invoice format. Urgent email from “procurement.” The money was gone within hours.

Traditional payment controls didn’t stand a chance. Why? Because the account format was correct — but the owner wasn’t.

That’s the blind spot Verification of Payee (VoP) fixes. And starting October 2025, it’s mandatory across SEPA.

From Compliance Checkbox to Strategic Control

Most finance teams treat VoP as a technical integration task. Install it, meet the regulation, move on. But this mindset misses the bigger opportunity.

VoP gives CFOs a new risk management tool — one that sits at the heart of every payment process.

The Missing Piece in Your Controls

Today’s payment systems already verify:

Proper approvals and permissions
IBAN format and check digits
Sanctions blacklists and AML flags

But they don’t verify who actually receives the funds. That’s how invoice fraud, spoofed supplier emails, and payment redirection scams sneak through.

In our analysis across €2B+ in annual payment volume, 12% of payment failures came from mismatched payee details — errors that VoP can catch 85% of the time.

Where VoP Creates Real CFO Value

Supplier Payment Integrity

With hundreds of new suppliers every month, manual verification is impossible. VoP automates this layer, flagging mismatches before funds move.

One multinational reduced payment exceptions by 73% in six months — and stopped three fraud attempts worth €1.4M.

Smarter Treasury Operations

VoP strengthens trust in high-value intercompany transfers and reduces the review burden for treasury teams. It’s especially valuable for shared service centers aiming for straight-through processing.

M&A Due Diligence

VoP is now showing up in private equity deal requirements. It demonstrates strong internal controls and uncovers weaknesses in target companies’ payment workflows.

What CFOs Need to Prepare For

Integration Complexity

VoP isn’t plug-and-play. Integration with ERP, TMS, and payment platforms takes time:

Centralized payment setups: 4–6 months
Decentralized setups: 12–18 months

Operational Workflow Changes

VoP introduces exceptions. Near-matches require review. No-matches delay payments. CFOs who succeed with VoP plan beyond IT, involving AP teams and redesigning escalation procedures.

ROI and Payback

Cost: €50K–€500K+ depending on company size
ROI: 10–50x fraud loss prevention
Payback: 6–18 months on average

How to Choose the Right VoP Provider

ART Certification

Only providers supporting EPC ART reports will keep you compliant. Don’t compromise here — retrofitting later is costly.

Enterprise Integration

You need:

High-quality API with strong documentation
Real-time + batch processing
Support for corporate naming conventions
Proven ERP integrations

Control & Audit

Choose solutions that:

Log all actions
Support configurable approval workflows
Integrate with COSO/SOX audit standards

Vendor master data
PO validation
Invoice matching
Fraud monitoring and sanctions screening

It’s not a separate step — it’s a core control layer.

Strategic Advantage for Finance Leaders

VoP gives CFOs a rare dual win:

Stronger controls
More efficient operations

Treat it as part of modern payment infrastructure, not just a compliance task. Early adopters gain an edge in fraud prevention, treasury accuracy, and supplier trust.

Ready to explore VoP for your finance stack?
Talk to us about your timeline and architecture.