Why VoP is not enough: false matches, delayed payments, and the real risks Treasurers will face starting Oct 9th
Disclaimer: This article was prepared by Benjamin Defays in his personal capacity. The opinion expressed in this article is the author’s own. On October 9th, a quiet revolution begins in European payments. The Verification of Payee (VoP) regulation will come into force, requiring over 3,000 Payment Service Providers (PSPs) across the Eurozone to verify the match between a beneficiary’s name and their bank account before executing SEPA payments. If you’re a corporate treasurer, this should raise a critical question: Is your master data ready? Because if it’s not — or if your beneficiary’s bank relies on outdated or incorrect information — you may soon face payment delays, operational disruptions, and a flood of false fraud alerts. But VoP is more than a compliance requirement in my view. It’s a strategic opportunity to strengthen your payment security ecosystem. And it’s also a risk — if you rely on it blindly. What is VoP and why it matters VoP is designed to reduce fraud and errors by verifying the pairing between a beneficiary’s name and their IBAN before a payment is executed. For SEPA single payments (pre-authorised or not), and for any payment made from a banking platform, this verification will be mandatory. For pre-authorised SEPA bulk payments, corporates can choose to opt in or out. The regulation introduces four possible outcomes for each verification: This approach is not entirely new. The UK has already implemented a similar system known as Confirmation of Payee (CoP) several years ago, which has proven effective in reducing payment fraud. VoP builds on this model, aiming to bring similar protections to the Eurozone, though with some differences in scope and implementation. While this sounds straightforward, the operational implications are significant. A single mismatch in a bulk payment file could block the entire batch, depending on your bank’s processing logic. The Risks of Inaction Treasurers who fail to prepare for VoP may face: And perhaps most critically: VoP does not protect you from fraud that has already infiltrated your systems. VoP’s Limitations: Why it’s not enough While VoP is a step forward, it is not bulletproof. Key limitations include: Strengthening your defenses beyond VoP To truly secure your payments, treasurers must go beyond VoP and implement robust internal controls. This starts with strictly followed procedures to independently validate a beneficiary bank account, complemented by a comprehensive & ongoing audit and clean-up of your ERP and TMS master data. Third-party bank account validation platforms offer a powerful complement to VoP. These platforms: These platforms can integrate seamlessly with your ERP and TMS, creating a secure and automated payment ecosystem that minimizes manual intervention and maximizes fraud prevention. Recommendations for Treasurers To prepare for VoP and enhance your fraud defences: To conclude, VoP is not just a regulatory hurdle — it’s a catalyst for better controls, cleaner data, and stronger fraud prevention. Treasurers who act now will not only avoid disruption but also elevate their organization’s financial security maturity. In a world where fraud is increasingly sophisticated, proactive validation and layered controls are no longer optional. They are essential. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Franklin
8 Key Questions a Treasurer Should Ask When Creating a Cash Flow Forecast
This article is written by Palm When regurgitating the cash flow forecast week in and week out, it is easy to become stuck in a rut, producing the same information in the same format and with the same shortfalls. Although the importance of the forecast on the rest of the business doesn’t waiver, the focus from the treasurer to strive for improvements and iterations inevitably does. In this post, I pose some questions to you as a treasurer to prompt you to think about your forecast and whether it’s time for a refresh. Before you get into the details, take a step back and think about the big picture. What’s the purpose of this forecast? Are you focused on short-term liquidity, preparing for long-term investments, or supporting strategic decisions like mergers or acquisitions? Having a clear objective in mind will help you avoid gathering unnecessary data and focus on what truly matters. Defining your goals upfront also helps you ensure your forecast is aligned with the needs of key stakeholders, like the CFO or the board of directors. Your forecast is only as good as the data you’re working with. Ask yourself if you have access to the most up-to-date and accurate information, whether it’s from your internal systems or external sources. Real-time cash positions, accounts receivable and payable, and working capital data are all critical to producing an accurate forecast. If you’re working with outdated or incomplete data, it’s likely to throw off your forecast—and your ability to make informed decisions. Treasury doesn’t work in a silo. A strong cash flow forecast relies on input from across the business—sales, procurement, finance, and more. Are you getting timely and accurate data from those teams? It’s important to establish open lines of communication with other departments and verify the quality of the data they provide. After all, if their numbers are off, your forecast will be too. It might also be worth scheduling regular check-ins to provide feedback to those teams to keep things running smoothly and ensure everyone’s on the same page. Business conditions don’t stay the same, so neither should your forecast. Is your company launching new products, expanding into new markets, or undergoing major changes? All of these factors can have a big impact on cash flow, and your forecast needs to reflect that. Staying in the loop on key business developments will help you adjust your forecast as needed and keep it as accurate as possible. By keeping an ear to the ground on what’s happening in the company, you’ll be better equipped to anticipate cash needs and provide more meaningful insights to leadership. One of the key roles of a treasurer is making sure the company’s cash is being used efficiently. Could excess cash be put toward paying down debt, reducing interest expenses, or funding new investments? Or do you need to hold onto more cash to cover short-term obligations? A well-structured cash flow forecast can help you answer these questions, ensuring you’re making the most of the company’s financial resources and supporting strategic decisions around capital allocation. Let’s face it: cash forecasting can be time-consuming. But is the time your team is putting into it paying off? Are you getting the insights you need, or is the process bogged down by manual data entry and time-consuming tasks? If your team is spending more time building the forecast than analysing it, it may be time to consider tools that automate the process. Automation can not only save you time but also improve accuracy, allowing your team to focus on strategic decision-making rather than data collection. Once your forecast is complete, the big question is: can you rely on it? Is it accurate enough to inform key decisions like capital investments, liquidity planning, or risk management? Confidence in your forecast is essential—especially when presenting it to senior leadership or the board. Regularly comparing forecasted cash flows to actual results can help you identify any discrepancies and improve future forecasts. Variance analysis helps ensure that your forecast is not only accurate but also actionable. Finally, it’s important to make time for reflection. Building this into your monthly cycle after each forecast period, review the results and identify what worked well and what didn’t. Were there any recurring errors? Did external factors cause unexpected variances? Forecasting is an iterative process, and there’s always room for improvement. The key is to continuously fine-tune your strategy based on what you learn along the way. Wrap Up Asking the right questions is the foundation of an accurate and actionable cash flow forecast. By focusing on data quality, collaboration, and constant refinement, treasurers can improve forecast accuracy and provide real value to the business. Whether it’s securing liquidity, optimising cash usage, or supporting long-term planning, an effective forecast gives you the insights you need to make informed decisions. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.