From 9. October 2025. year, all bank transfers within the European Union will have to go through a new recipient verification, which allows the benefit of the payment user to be verified in relation to the corresponding IBAN, transmit German media.
For each transfer, the Bank will check the accuracy of the data entered and display the result via the traffic lights:
- Green color: The data matches completely (“matching”).
- Yellow color: Data almost match, and the bank displays the correct name as a proposal (“close match”).
- Red Color: Data do not match (“No matching”).
In case of red, the client decides whether to make a payment or check the data with the recipient. According to the German Association of Banks, the new check was introduced to reduce the risk of paying fraud.
The recipient check will be required not only in online banking, but also with paper payments at the counter, where the Bank’s Officer performs data on the spot. However, automatic verification will not be possible in payments inserted in the banking mailbox, and in which case the client will have to contact his bank to make sure the transfer has been successfully executed.
This step of the EU aims to increase financial transactions and reduce the possibility of finishing the wrong person.
