Real-World Examples: How Businesses Reduced Fraud with IBAN-Name Checks

Security 7 min read

How DACH Businesses Use IBAN-Name Checks to Stop Payment Fraud

Fraud isn’t theoretical anymore. Across Germany, Austria, and Switzerland, it’s a daily battle — especially in SEPA payments, where speed leaves little room for error. Authorized Push Payment (APP) fraud, IBAN mismatches, and social engineering attacks continue to cost businesses millions.

That’s why more and more companies are turning to IBAN-name checks via Verification of Payee (VoP). Not because regulation says so — but because it works.

This article breaks down how real businesses in the DACH region use VoP to block fraud, streamline payments, and stay compliant without slowing down operations.

Why VoP Matters Now — Not Later

With SEPA Instant Payment Regulation and PSD3 rolling out, regulators are making real-time payee validation mandatory. But the urgency goes beyond legal pressure.

What’s really at stake:

APP Fraud: Sophisticated scams trick teams into sending money to fake suppliers.
Costly Errors: One wrong IBAN can derail a large transaction — and trust.
Tightening Rules: EU mandates require VoP across SEPA zones, including in Germany, Austria, and Switzerland.

Case 1: A German E-Commerce Platform Closes a Fraud Loop

Problem:

One of Germany’s top e-commerce players noticed a disturbing pattern: recurring chargebacks due to payments sent to the wrong accounts — often the result of manipulated or mistyped IBANs.

What They Did:

They integrated VoP APIs directly into the checkout and vendor payout flows, ensuring every payment passed a real-time IBAN-name check before it left the system.

The Results:

50% drop in fraud-related losses
30% fewer customer disputes
Boosted compliance with German VoP implementation requirements

This wasn’t just a backend win — it became part of their customer experience promise.

Case 2: An Austrian Bank Gets Ahead of Regulatory Risk

Problem:

A mid-size Austrian bank came under scrutiny for multiple fraud incidents in cross-border SEPA transactions. Internal processes were slow, fragmented, and reliant on manual validation.

What They Did:

They upgraded their payment pipeline with machine learning-enhanced VoP validation, covering both local and cross-border flows.

The Results:

70% reduction in fraud
Faster processing across retail and corporate channels
Increased regulator confidence — and fewer audit headaches

What started as a compliance upgrade turned into a reputation win.

Case 3: A Swiss PSP Strengthens B2B Transfers Without Adding Friction

Problem:

A PSP in Switzerland was losing ground in the B2B space. Fraud was rising, and the cost of chargebacks was hitting their margins.

What They Did:

They rolled out VoP for all high-value B2B payments, integrating checks into existing instant payment rails — without adding manual reviews or delays.

The Results:

80% fewer fraud incidents in B2B transactions
Significant reduction in chargeback processing costs
New partnerships with risk-sensitive enterprise clients

Security became their differentiator, not a bottleneck.

Why SMEs Are Also Jumping In

VoP isn’t just for big players. Small and medium businesses across the DACH region are seeing real ROI from real-time validation.

Why it works:

Fewer failed payments = less time on the phone with banks
Lower fraud exposure = fewer financial shocks
Accurate transactions = happier clients and suppliers

Even basic IBAN-name matching saves time and reduces uncertainty in vendor and payroll flows.

ROI Snapshot: What You Get When You Validate Early

Here’s what businesses typically gain within the first 6–12 months of VoP implementation:

Lower fraud losses: Many report 50–80% drops in APP and account mismatch fraud
Cleaner operations: Less time spent fixing failed payments or investigating chargebacks
Customer trust: Clients notice when their payments are secure and friction-free
Regulatory readiness: Stay ahead of PSD3 and EPC requirements — without scrambling

IBAN-Name Checks = A Competitive Edge

In today’s payment ecosystem, real-time verification is no longer a bonus — it’s expected.

VoP helps you:

Deliver faster, safer payments
Build trust with clients and partners
Keep regulators happy — and out of your inbox

And when fraud hits your competitors but not you? That’s market advantage.

How Checkpayee Helps

Checkpayee offers VoP solutions tailored for the DACH market — built for compliance, scale, and simplicity.

Fast setup: Go live in weeks, not months
Regulation-ready: PSD3, SEPA IP, EPC — covered
Flexible APIs: Plug into your core system with minimal disruption

Whether you’re a multinational bank or a scaling B2B platform, we make payee verification seamless — and smart.

Book a consultation and see how Checkpayee can help you cut fraud and build trust.