Europe’s Payee Checks Set the Pace as US Plans Take Shape
A payment moving from one country to another passes through banks, clearing systems and payment networks that operate under different rules. The recipient information used to check the payment and bolster security can be just as fragmented. Payee verification connects some of those far-flung systems. Banks and payment providers are placing account and beneficiary checks […] The post Europe’s…
Europe’s payee verification checks are setting the pace as the US plans its own payment verification strategies. Companies like IPID are funding the development of account verification networks that support financial institutions in more than 50 countries, with plans to expand in the US and Europe. Meanwhile, the US is developing its own capabilities, with the Federal Reserve already offering Payee Name Verification and planning to make it available through the FedNow service.
This trend of placing recipient verification closer to payment initiation is seen across the industry, with companies like Open Payments, MassPay, and FinTech Diesta integrating verification services into their APIs to check account status and ownership before a payment is originated.
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