Receiving account verification checks that account details intended to receive funds are valid and associated with the expected recipient. It helps reduce misdirection, fraud, returns and payment delay.
Which details may be checked?
- Account number, IBAN or local equivalent
- Bank or routing identifier
- Beneficiary or account name
- Currency and account type
- Country and institution
- Whether the account can receive the intended payment
How can verification be performed?
Methods include provider validation, bank-name checks, account ownership evidence, micro-deposits and independent confirmation with an authorized contact. Availability differs by country and payment rail.
Verification vs. beneficiary approval
Account verification confirms selected attributes. Beneficiary approval is the business authorization to pay that recipient. A technically valid account can still be fraudulent or commercially incorrect.
How should changes be handled?
Treat new bank details as a high-risk change. Verify through a trusted channel separate from the request, record the verifier and rerun required approvals.
What does verification not prove?
It does not establish delivery, invoice validity, beneficial ownership of funds or final settlement. Those require separate evidence.
