On 22 October, TerraPay said it had connected TerraPay Verify, its payee verification service, to the Confirm application on Liink, the payment information network run by Kinexys by J.P. Morgan. Banks and other financial institutions on Liink, along with TerraPay Verify clients, can now check bank account and digital wallet details before they send an international payment.
The case for it is cost. TerraPay cites a LexisNexis Risk Solutions study, True Impact of Failed Payments 2026, which estimates that 10% to 15% of international payments fail because the beneficiary details are wrong. The release gives no results from the integration, no volumes and no list of markets covered.
The more telling context is Europe, where a payee check is now law for one group of payers and a choice for another. The line falls between people and companies, and most trade payments sit on the company side.
At a Glance
- 22 October 2026: TerraPay Verify connected to the Confirm application on Kinexys Liink.
- 9 October 2025: banks in the euro area required to offer a free payee check on euro credit transfers.
- 9 July 2027: deadline for banks in EU states outside the euro.
- 10% to 15%: share of international payments that fail on wrong beneficiary details, per the LexisNexis study TerraPay cites.
- 85%: share of 2024 credit transfer fraud losses in the European Economic Area borne by payment users, per the EBA and ECB.
What Was Announced
Liink is a network for banks to exchange payment information. J.P. Morgan has described its Confirm application as enabling near real time validation of account ownership, status and transactions. TerraPay Verify now sits inside that service and adds TerraPay’s own account and wallet checks. TerraPay links the service to the G20 roadmap for cross border payments and says the deal widens its reach among institutions on Liink, with room to extend coverage through further partnerships.
Paul Atkinson, Head of Kinexys Liink Product at Kinexys by J.P. Morgan, said the integration makes it easier for institutions to improve control and reduce payment fraud across the cross border payment lifecycle. David Backshall, Vice President, Payment Partnerships at TerraPay, said: “Trust is fundamental to every successful payment.”
Liink is not the only route. Swift launched its Payment Pre-validation service in 2021, saying it could reach up to 11,000 institutions and 4 billion accounts in 200 countries. A check only works when the paying bank and the receiving bank sit on the same network, so coverage, not technology, is the constraint.
Europe’s Rule, and the Way Out
Regulation (EU) 2024/886 requires banks in the euro area to offer a payee check on euro credit transfers, standard and instant, free of charge, from 9 October 2025. Banks in EU states that do not use the euro must comply by 9 July 2027. Consumers cannot switch the check off.
Companies can. The regulation lets payers that are not consumers opt out when they submit several payment orders as a package, and opt back in at any time. That is how many companies send supplier payments. Banks have built around it. Commerzbank treats batch orders sent through its existing order types as opted out automatically. Convera applies a default opt out to batch payments for all its corporate customers.
The result is a check that is mandatory where individuals pay and optional where companies pay in bulk.
What the Checks Find
Volumes are large. The European Payments Council says the scheme reached close to one billion requests a month in March 2026. Preliminary data from Luxembourg banks since launch, released through the Luxembourg Bankers’ Association (ABBL), shows 60% of checks returning a match, 19% a close match, 14% no match and 7% where verification was not possible. The ABBL says close and no matches often stem from trade names, abbreviations or acronyms, and that most alerts come from small discrepancies rather than fraud.
That is the corporate problem in one line. A supplier can trade under one name, invoice under a second and bank under its registered legal name. A check built to catch a misspelt personal name flags all three, which gives a treasury team running hundreds of payments a reason to turn it off.
Who Carries the Loss
The regulation sets out three cases.
The bank fails to check. If the payer’s bank does not perform the check as required and the payment is executed defectively as a result, the bank must refund the payer without delay.
The payer ignores a warning. A bank that has complied is not liable for a transfer to an unintended payee. When the details do not match, the bank must warn the payer that the money may reach an account not held by the intended payee, and explain what that means for its liability and the payer’s right to a refund.
The company opts out. The regulation requires banks to give the same warning to a company when it opts out. Eurobank’s customer notice states that a package sent without the check is executed under the customer’s sole responsibility. How other banks write this into their terms varies.
Fraud data points the same way. The joint EBA and ECB report published on 15 December 2025 put credit transfer fraud in the European Economic Area at €2.2 billion in 2024 and found that payment users bore about 85% of those losses, mostly through scams that manipulated them into sending the money. A payment to the wrong account is a different problem, but the pattern holds: losses tend to settle with the payer.
What It Means for Trade and Treasury
Supplier payments, open account settlements and the proceeds of trade finance all move on the same credit transfer rails. A payment sent to the wrong account leaves a supplier unpaid, can hold up a shipment and ties up working capital on both sides while the banks trace the funds. Instant payments settle in seconds, which leaves no window to catch the error after the fact.
For a treasurer, opting in or out is now a control decision with a liability attached. It belongs in the payments policy, signed off like any other control, not left as a default set by the bank.
What to Watch
Opt outs. No public figure shows how many corporate payment files skip the check.
Name matching. Whether the next version of the scheme, which the European Payments Council has begun to discuss, handles trade names and legal names better.
Coverage. Which markets the Liink and TerraPay check reaches. The release does not say.
Data. A check means sending names and account details across borders. The release does not say which data rules govern that exchange.
The Check Is Weakest Where Trade Money Moves
Payee checks now work best on single transfers by individuals. Corporate bulk runs, where much of the money paid to suppliers moves, can sit outside them by choice, and the loss then sits with the company. The banks and platforms that make the check reliable for company names and bulk files, and publish what it catches, will give treasurers a reason to switch it back on.
Related on Digital Trade Outlook
- PaymentWorks Launches Payee Profile to Make Vendor Identity Portable Across B2B Payments
- Swift and Iberpay Link Spain’s Instant Payment Rails to Cross-Border Transfers
- KB Kookmin Bank Becomes First Korean Bank to Use Kinexys by J.P. Morgan for Import Export Payments
Image: Dinu Dominic Manns, CC BY 2.0, via Wikimedia Commons (resized)