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VoP mismatches in online gambling may block payments under the EU Instant Payments Regulation. Here’s how operators can stay compliant and prevent risks.
From 9 October 2025, the EU Instant Payments Regulation (Regulation 2024/886) requires all payment service providers to use the Verification of Payee (VoP) system. This means that before any transfer — including gaming deposits and payouts — the beneficiary’s name and IBAN must be verified as matching the actual account holder.
For the gambling industry, this introduces a new operational challenge: the issue of VoP mismatches in online gambling. Even a small discrepancy, such as a missing middle name or typo, can delay or block a payment. For remote gaming operators, these mismatches are not only technical hurdles but also compliance and reputational risks that must be managed carefully.
Understanding VoP Mismatches in Online Gambling
A VoP mismatch occurs when a payment provider detects that the name and IBAN entered by the payer do not exactly match the beneficiary details held by the bank.
Under the Instant Payments Regulation (IPR), all payment service providers (PSPs) — including banks, payment institutions, and e-money institutions — must perform this check for both instant and standard transfers.
How This Affects Gambling Operators
- Blocked payouts: Transfers to players may be delayed or rejected.
- Increased disputes: Players might contest transactions or claim unpaid winnings.
- Operational stress: Manual checks and follow-ups slow down payment processing.
- Liability questions: If an operator authorizes a transfer after a VoP alert, it may share responsibility for potential losses.
In short, VoP mismatches in online gambling require operators to adapt both their technical systems and internal procedures to remain compliant and efficient.
AML and KYC Risks Behind VoP Mismatches
While the Verification of Payee rule focuses on fraud prevention, it also intersects with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) obligations.
Regulators consider payouts to third-party accounts or mismatched beneficiaries as anomaly indicators that may signal identity misuse or money-laundering attempts.
Best Practices to Align AML and VoP Controls
- Use one-to-one payout rules: Winnings should only go to accounts owned by the same verified player.
- Document exceptions: If a transfer to another account is permitted, the operator must verify the relationship and ensure no red flags exist.
- Monitor continuously: Detecting repeated mismatches can help identify account takeovers or proxy use.
- Review VoP alerts jointly: Compliance and payments teams should analyze mismatches together to determine whether they are operational or suspicious.
Ignoring VoP mismatches in online gambling can lead to AML violations, contractual disputes, and reputational damage — particularly in high-risk jurisdictions.
Preparing for the Instant Payments Regulation
Although the technical implementation of VoP is a duty of PSPs, online gambling operators must ensure that their systems and compliance frameworks are aligned with the new regime.
Action Steps for Operators
- Integrate VoP alerts into payout systems to flag discrepancies automatically.
- Update contracts with PSPs to clarify roles and liabilities for mismatched transactions.
- Verify player data accuracy at registration and during periodic KYC reviews.
- Test internal workflows through simulations before the October 2025 deadline.
- Train operational teams to understand the difference between benign mismatches and suspicious activity.
By doing so, operators can reduce the operational impact of VoP mismatches in online gambling while strengthening their compliance posture.
Turning Compliance into Competitive Advantage
The implementation of the Verification of Payee system should not be viewed merely as a regulatory burden. Handled strategically, it can enhance payment transparency, reduce fraud, and build player trust.
Operators who proactively address VoP mismatches in online gambling will stand out for their reliability and commitment to safeguarding players’ funds. In an industry increasingly defined by trust and compliance, early adaptation will translate into smoother operations and stronger reputations.
Conclusion
The Instant Payments Regulation reshapes how payments are verified across Europe. For the gambling sector, VoP mismatches in online gambling are an unavoidable challenge — but also an opportunity to refine AML controls and modernize internal systems.
By coordinating with PSPs, improving data accuracy, and training staff to manage verification alerts, remote gaming operators can ensure compliance, maintain seamless payouts, and reinforce player confidence.
On a similar topic, you can read the article Online Gambling and the European Accessibility Act – Regulatory Profiles in Italy and the EU