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EU Mandates IBAN-Payee Name Matching to Fight Fraud in Payments

The EU's new rule boosts payment security. Verify your payee's name to avoid warnings or rejected transactions.

, and Administrator

2025 October 17 . 8:46 PM

1 min read

In this picture we can see a close view of the identity card. In the front we can see american flag... — In this picture we can see a close view of the identity card. In the front we can see american flag and "Critical Licence" written.

EU Mandates IBAN-Payee Name Matching to Fight Fraud in Payments

Starting October 1st, a significant change in payment procedures has taken effect across the European Union. All banks must now match the International Bank Account Number (IBAN) with the payee's name for every transaction. This new rule aims to reduce incorrect transfers and fraud, particularly concerning broadcasting fees.

The European Parliament has introduced a traffic light system to flag mismatches between the IBAN and the payee's name. Red warnings indicate a high risk of fraud, yellow warnings suggest a potential error, while green signals a match. This system applies to all payment traffic in the EU, not just broadcasting fee transfers.

Citizens paying by transfer or standing order should verify they've specified the payee correctly. For the GEZ broadcasting fee, the payee's name should be entered exactly as 'Rundfunk ARD, ZDF, DRadio'. Failure to do so may result in warnings or transaction rejections. Those using SEPA direct debit mandates, however, are unaffected by this change.

To ensure smooth transactions, it's recommended to set up a SEPA direct debit mandate, which allows independent withdrawal of funds. This change, while affecting all EU payment traffic, is particularly crucial for broadcasting fee payments. By matching IBANs with payee names, the EU aims to create a safer and more accurate payment system.