Europe's Big Payment Security Upgrade: New Verification Process Starts Oct 9
From 9 October 2025, a significant security upgrade will be implemented across Europe for payments. Latvijas Banka, along with other euro area central banks, will enforce a verification process that checks the recipient's name against the provided IBAN before each payment. This measure aims to prevent fraud by allowing payments to be halted when fraudsters alter payment details.
The new requirement applies to all types of payments, including intrabank, traditional, and instant transactions. However, verification will only occur if the payer provides the payee's details. Notably, Latvijas Banka will offer its instant verification service to payment service providers from other European countries starting from 5 October 2025.
The verification process ensures the payer receives a notice about the verification result before making a payment. Despite this, the payer remains responsible for deciding whether to proceed with the payment, even if there's an irregularity. The verification result does not affect the payer's right to proceed with the originally provided payee details.
This new verification service, offered by Latvijas Banka and other euro area central banks, is a significant step towards enhancing payment security and fraud prevention. It becomes uniformly applicable in Europe on 9 October 2025, marking a collective commitment to protecting payers across the continent.
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