Practical guides 7 min read

Verification of Payee in Accounts Payable Automation

Accounts payable automation speeds up paying suppliers — and speeds up paying fraudsters too, if a bank-detail change slips through. Here is where Verification of Payee fits in the AP workflow.

By Verification of Payee EU · powered by RoxPay

Key takeaways

  • The riskiest moment in AP is a change to a supplier's bank details; that is where to place a VoP check.
  • Verify the payee name against the new IBAN before the vendor master is updated, not after.
  • Automated VoP turns a manual phone-call control into a consistent, logged step.

Most invoice-redirection fraud does not break into your systems — it simply asks, politely and convincingly, for a supplier's bank details to be changed. Once the vendor master record points at the fraudster's account, every future invoice pays the wrong party automatically. Accounts payable automation makes that failure faster and quieter, which is exactly why a verification control belongs in the workflow.

Where fraud enters the AP process

A clear-eyed look at the AP lifecycle shows the single highest-risk event:

  • A supplier (or someone impersonating them) requests a change of bank account.
  • An onboarding form supplies an IBAN that nobody independently confirms belongs to the supplier.
  • A one-off, urgent payment is set up outside the usual approval path.

Placing the VoP check correctly

Verification of Payee answers a question manual controls struggle with at scale: does this IBAN actually belong to the name on the invoice? Put the check at the point of change, before the record is trusted.

  1. 1 Trigger a VoP check whenever a new or changed IBAN is entered for a supplier.
  2. 2 Compare the verified payee name to the legal name on file, not just the trading name.
  3. 3 Hold the change for review on a close match or no match, instead of saving it automatically.
  4. 4 Log the outcome against the vendor record so the control is auditable.

Verify before you trust the master data

The goal is to confirm the account before it becomes the default payee, not to discover the problem in a post-payment reconciliation. A check at the point of change is worth far more than a report after the funds have gone.

For high-volume AP teams, RoxPay can verify a single changed IBAN in real time or a whole supplier file in bulk, so the control scales with your payment runs.

FAQ

Frequently asked

IBAN validation only checks that the number is well-formed and the checksum is valid. Verification of Payee confirms that the account actually belongs to the named supplier, which is what stops redirection fraud.

Verifying at the point a bank detail is added or changed catches the highest-risk event efficiently. Many teams also re-verify periodically for critical suppliers.

Yes. A VoP API call fits into the approval step of most AP platforms, returning a match outcome you can use to auto-approve or route for review.

Add VoP to your AP workflow

Talk to RoxPay about verifying supplier bank details at the point of change.