Step 1
Enter bank account number and IFSC code
- Payments
Payment Collections & Settlements
Multi-Collect
UPI Payment Gateway
Recurring Payments
Instant Payouts
Escrow Accounts
Ledgers
- Banking
Banking-as-a-Service Platform
KYC & Onboarding
Hyperstreams
Bytes
UIStreams
- Resources
- Company
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
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.
Access our Product Guide
API DocumentationFrequently 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?
Penny Less bank account verification helps you check the legitimacy of onboarding users by using their bank account number and IFSC code. No amount is sent to the end user’s account for verification.
What is Penny Pull Verification?
Penny Pull is an account verification method that involves retrieving a small amount from the subscriber's bank account for authentication before crediting funds to the beneficiary.
Is Penny Drop safe?
Yes. Penny Drop Verification adds an extra layer of security to the onboarding process. It ensures that the bank account belongs to the user and reduces the risk of fraudulent activities.
What are the benefits of Penny Drop?
Penny drop verification offers several benefits over traditional methods of account verification, such as manual bank transfers or credit card authorizations. Some of these benefits include:
Increased security: Penny drop verification is a highly secure method of account verification, as it ensures that the account belongs to the intended recipient and cannot be used for fraudulent purposes.
Reduced fraud: By verifying the account before completing the transaction, penny drop verification helps reduce instances of payment fraud and unauthorized transactions.
Faster processing: Penny drop verification is a quick and easy process that can be completed in real-time, thus reducing transaction processing times.
Lower costs: Compared to traditional methods of account verification, penny drop verification is a cost-effective option that can help businesses save money on transaction processing fees.
Improved customer experience: By reducing instances of payment fraud and unauthorized transactions, penny drop verification can help improve the overall customer experience and build trust with customers.
How can I get started using Penny Drop Verification for my business?
Drop us a message at hello@decentro.tech, and we will enable the Penny Drop Verification for your business use case.
Is Penny Drop Verification needed for my business?
Yes. If your business deals with online transactions, such as E-commerce purchases, Bill payments and Money transfers, Penny Drop verification is an effective method to enable bank account validation for your use case.
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