How the EPC Directory Service (EDS) works in the Verification of Payee context?

The European Payments Council and Swift (the company responsible for implementing the EPC Directory Service) have recently released a specifications document detailing the operation of the EDS within the VOP Scheme. This document is aimed directly at VOP Scheme participants and their technical providers (RVMs) to assist them in integrating their Verification of Payee solution.

What is the EDS Local File?

The EDS (EPC Directory Service) Local File is the representation of the EDS in the form of a file, available in XML, JSON, and CSV formats. It enables VOP Scheme participants and their technical providers to access locally the essential information, which is generated daily on the EDS platform. Among this information, you will find:

• Participant identification data: the participant’s BIC code, linked BICs, as well as PSD2 Authorisation Numbers (NAN) and the emails of technical contacts.
• Adherence data: the schemes to which the participant subscribes (e.g. VOP), the date of availability, roles (Requester / Responder) and options (such as the company identifiers accepted in requests).
• API information: the URI to be called (Production and Test), a list of environments, priority, and version.

These data are designed to be integrated into the participants’ IT systems and are updated on a daily basis.

How to Use the EDS within the VOP Scheme

The specifications document provides clear guidance for the implementation of the EDS within the VOP framework. Here are the key points:

On the requesting side (VOP Requesting PSP)

• Lookup based on the IBAN: The requesting PSP will use the beneficiary’s IBAN to retrieve the BIC of the PSP that holds the account, relying on commercially available IBAN/BIC directory services. It is important to note that the EDS does not offer this service.
• Identification of the API endpoint: Once the BIC is identified, the requesting PSP consults the local copy of the EDS to retrieve the URI of the responding PSP’s API.

On the responding side (VOP Responding PSP)

• Verification of participant validity: The responding PSP must verify that the combination of the requesting PSP’s BIC (received in the API call) and the PSD2 Authorisation Number (NAN) extracted from the PSD2 QWAC certificate corresponds to a valid entry in the EDS. This verification ensures that the requesting party is indeed a valid participant in the VOP Scheme.

Further Information

The specifications documents, sample files, and the EDS documentation shared by the EPC are accessible on the EPC website: LINK

This article is based on the technical specifications of the EDS Local File, as detailed on the EPC website. It is intended as a practical tool for anyone looking to integrate the EDS within the VOP framework, ensuring a simple and standards-compliant implementation.