# Account Verification

## Introduction

The Account Verification API is designed to help Payment Service Providers (PSPs) operating in the EU ensure regulatory compliance, reduce fraud, and streamline payment processes. This endpoint can be enable to support using Token’s Settlement Accounts functionality for Payout / Refunds, or can be used for non-settlement account specifically before payment initiation (**Note: This use case requires specific contractual agreement and costing with Token. This will not be available to use until this is in place and enabled for your Token memberId**).

This API enables real-time verification of beneficiary account details, supporting both onboarding and payment initiation workflows. It is built to align with the latest regulatory requirements, including the Instant Payments Regulation (EU) 2024/886, which mandates Verification of Payee (VoP) checks for all EUR-denominated credit transfers starting **9th October 2025**.

br
## Benefits and Use Cases

br
### Key Benefits

br
- **Regulatory Compliance**: Meets mandatory VoP requirements for EUR-denominated credit transfers using , helping PSPs avoid penalties and maintain operational integrity.
- **Fraud Mitigation**: Reduces the risk of Authorised Push Payment (APP) fraud and misdirected payments by verifying that the payer’s provided account name matches the beneficiary’s IBAN.
- **Operational Efficiency**: Automates account verification, reducing manual intervention and errors.
- **Customer Trust**: Enhances platform reputation and customer retention by ensuring secure and accurate payments.


br
### Use Cases

- **Settlement Account Verification**: Ensures the beneficiary's name matches the IBAN before processing payouts or refunds from a Token settlement account.
- **Payment Initiation Checks**: Performs real-time account verification checks before executing account to account payments. (**Note: Requires specific contractual agreement and costing with Token**)
- **Audit and Compliance**: Maintains records of account verification checks for audits and regulatory reviews.


br
### Future Enhancements

- **Expanded Use Cases:** Coverage of **GBP** based accounts.


If you have any feedback about the developer documentation, please contact [devdocs@token.io](mailto:devdocs@token.io)