Multi-Collect
Recurring Payments
Ledgers
Payment Gateway
Instant Payouts
Escrow Accounts
Settlr
KYC & Onboarding
Hyperstreams
Bytes
UIStreams
ScannerStep 1
Enter bank account number and IFSC code
Table of Contents
- Methodology
- The Need for Penny Drop Verification
- Multiple Methods for Account Verification
- Where You Can Use It
- Key Features
- Using Decentro's APIs for Penny Drop Verification
- Penny Drop Verification - FAQs
Methodology
Validate the bank account details of individuals in the following steps
Penny Drop Verification
Step 2
Hit the API to send a penny into customers account
Step 3
Receive verified account status and beneficiary name upon successful verification
Step 4
If verification fails, the bank account is closed or invalid
Reverse Penny Drop Verification
Step 1
Customer enters UPI ID
Step 2
Customer initiates an INR 1 transaction via UPI ID
Step 3
Receive verified account status and beneficiary name upon successful verification
Step 4
If verification fails, the bank account is closed or invalid
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The Need for Penny Drop Verification
The primary purpose of a business carrying out a penny drop bank account verification of its customers is to ensure that:
The beneficiary bank account exists
The bank account is active
Validate the account holder’s name
Multiple Methods for Account Verification
Provide users with the flexibility of deploying any of the following methods for the validation of bank accounts
Penny Drop
Verify the legitimacy of the user’s bank account by making a modest deposit of INR 1. This yields verified bank information and the beneficiary and is very effective in determining whether the associated account is active.
Penny Less
Verify bank accounts before sending any money with just a few clicks. The Penny-Less Bank Account verification method helps you check the legitimacy of onboarding users by verifying the account holder’s name and/or status of the bank account via account number and/or IFSC code. No amount is sent to the end user’s account for verification.
Penny Pull
Verify bank account details by initiating a small transaction (penny pull) and confirming it with the account holder. The user can also verify the bank account details by launching the UPI app to initiate the transaction. After successful verification, the amount gets reversed, i.e., credited to the beneficiary account.
Where You Can Use It
Financial
Services
Adhere to regulatory compliance by accurately verifying customers’ account details
Money
transfers
Verify the bank accounts of both the sender and the recipient during online money transfers
E-Commerce
Purchases
Verify the bank accounts of buyers and sellers during online transactions
Bill
Payments
Verify the bank accounts of billers and payers during online bill payments
Key Features Of Penny Drop Verification API
Fraud
Detection
With secure and transparent access to data, the risk of identity fraud is eliminated right at the onboarding process.
Instant
Checks
Validate merchant/customer authenticity via selective credentials such as the IFSC code and account number.
Bulk Account
Verification
Do a single account verification or bulk verifications in one go via APIs.
Enhanced
Accuracy
Ensure accuracy by verifying the customer’s bank account information directly with the bank, thereby eliminating the risk of human error.
Accelerated
Onboarding
Retrieve and authenticate information via powerful APIs without exposing data to a third party, thereby eliminating delays in onboarding new vendors/ merchants/clients.
Automated
Workflows
Easy-to-integrate APIs for your existing workflows.
Penny Drop verification for your business - The Decentro Edge
How Can Decentro Help?
Single API for instantly validating a user’s bank account via penny drop/pull/less verification.
Inbuilt approval flow and beneficiary name verification.
Flexible API-based flow that can be embedded easily in your existing workflows.
Verify accounts on the fly while maintaining the accuracy and speed of onboarding and transactions.
Leverage multi-bank architecture in the backend so that unexpected downtimes, black swan events, or volume spikes will not impact your business.
For Developers
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Simple & Automated APIs To Help You Launch 10X Faster.
Frequently Asked Questions
What is Penny Drop Verification?
Penny drop is an account verification method that involves depositing a small amount in a subscriber's bank account for authentication before crediting funds to the beneficiary.
What is Penny Less verification?
What is Penny Pull Verification?
Is Penny Drop safe?
What are the benefits of Penny Drop?
How can I get started using Penny Drop Verification for my business?
Is Penny Drop Verification needed for my business?
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