Three reasons why you should check your suppliers’ bank account data

It is now possible to check the ownership of business bank accounts, here are three reasons why you should check the bank account data of your suppliers:

  1. You don’t want to become a victim of invoice fraud

Invoice fraud, sometimes called procurement fraud, occurs when a fraudster impersonates a supplier and submits an invoice that is fraudulent, or sends you a letter asking you to change the bank account details you hold for a genuine supplier. In both cases the bank account data they provide will be for a fraudster rather than for your genuine supplier. By checking that bank account data submitted belongs to your supplier you will be able to quickly and easily spot such attempts at fraud and make sure your business does not become a victim.

  1. You want to avoid costly payment failure

When setting up business to business payments bank account details have to be entered into your systems – sometimes multiple times. It’s very easy to mis-hear or mis-key numerical data.  When this happens and a payment is submitted it can be costly. You may incur penalties and you will have to spend time finding the correct information and updating your systems.  Additionally your supplier may have to wait longer for payment which can damage your relationship with them. By checking bank account data at point of entry you will be able to identify any error as early as possible – before a payment is submitted and cost is incurred.

  1. You want to set up supplier accounts efficiently

Setting up new suppliers on your systems, can be time-consuming and require them to provide you with a lot of information before you are satisfied that you have what you need to set up the account. One of the main factors you are likely to want to check is that the bank account data you are intending to make payment to belongs to them. Traditionally this has involved asking them to supply paper based proof.  Not only can such documents be forged but collecting and checking them takes time for you and your supplier. By checking electronically you can quickly and reliably confirm bank account ownership and so improve the set-up process for your suppliers.

Checking the ownership of UK business bank accounts is a new approach to improving efficiency and avoiding error and fraud. This could revolutionise how you set up your supplier accounts and protect you from significant losses. For more information about Bank Wizard Absolute for checking business bank account details please click here to email us.