It’s not just account number checking – 3 extra benefits of bank account validation

Bank account validation is not is not just account number checking. This week our experts take a look into 3 extra benefits our customers are getting from bank account validation.

I was recently talking to the lady who manages expenses payments from our EMEA shared services centre. She was telling me how they use Bank Wizard our bank account validation tool. I learned that for them, one of the main benefits was in obtaining routing information. 

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It wasn’t news that we have this functionality but I had totally underestimated the value it might have to customers – we’ve been so busy talking about the need for validation, so here are the top 3 ‘other uses’ for bank account validation:

1.       Routing information

In order to send certain payments, particularly cross-border payments and CHAPS payments, a BIC (Bank Identified Code) is normally required.

Also referred to as routing codes or more frequently SWIFT codes these pieces of information are the postcode to the name and address supplied by the bank account number and sort code (or IBAN). Often not recorded at point of capture of account details a good bank account validation tool will supply this missing data.

2.       Provide IBANs from BBANs

Consumers usually know what their domestic bank account data is, in the UK this would be their account number and sort code, this information forms their BBAN (Basic Bank Account Number.)

Ask them for their IBAN (International Bank Account Number) and chances are they won’t know what you mean. The advent of initiatives such as SEPA (Single Euro Payments Area) and the global move to ISO20220 has meant that more countries and companies are standardising on IBAN.

Bank account validation tools should be able to provide you with the IBAN for the BBAN data supplied and should be able to do it for the bank account data of any country you operate in.

3.       Tell you if an account is reachable by payment schemes

When making payment to bank accounts it’s helpful to know if the account concerned can accept that payment, otherwise it will fail. Schemes this has been particularly useful for are the UK Faster Payments scheme and SEPA – particularly the SEPA business direct debits scheme which is not universally adopted.

All of the above processes should also work seamlessly as part of a validation routine providing users with the extra information they require without adding extra steps and processes.

If you’d like to take a free trial of Bank Wizard our bank account validation and data enrichment solution please click here.