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Did you know that India has emerged as the global leader in real-time payments? Indians process over 41 Billion transactions each day as per a report published by FIS Global.
Businesses depend on multiple channels to pay their vendors. The most common methods of payments are direct bank transfers, IMPS, RTGS, and NEFTs. While processing these payments, banks or any other payment aggregators tend to verify the bank account number and the IFSC code.
This could mean that while the transaction is successfully made for a particular account, businesses won’t have visibility on if the transaction was made to the right business partner or vendor because there is no clear validation of the account holder’s name. This, in turn, increases the chances of fraud.
In order to help make your transaction fool-proof, we have introduced the functionality of verifying the account holder’s name, in the latest update to our Bank Account Verification solution.
This feature will match the account holder’s name entered by you against the actual name of the account holder from the bank records and help you validate if the account name matches. This helps you reduce fraud and ensure that the transfers are made to the intended beneficiary only, It will also result in faster processing of the applications for investments, insurance, loans, etc.
How do Cashfree Payments verify the account holder’s name?
Broadly, the name match results will be divided into 5 categories:
- Direct Match: 100%
- Good Partial Match: 85% – 99%
- Moderate Partial Match: 60% – 84%
- Poor Partial Match: 34% – 59%
- No Match: 0% – 33%
Let’s take a look at how the name match works,
Let’s assume my vendor’s name is Suman Agrawal. While verifying the bank details, if the account holder’s name is entered as Suman A, then the result for the Bank Account Verification will include the name at the bank, name match result, branch, bank, and city.
The result for the name match will be-
Name at the bank: Suman Agarwal
Name match result: Good Partial Match 95%
If the name match results are in the first 2 categories i.e Direct Match or Good Partial Match, the payouts can be processed directly, without any concern.
Now, let’s see what happens when I enter the name Suman Agarkar.
The result for the Name match will be-
Name at the bank: Suman Agrawal
Name match result: Moderate Partial Match 70%
As I have entered Suman Agarkar, it doesn’t exactly match the account holder’s name at the bank which is Suman Agrawal. For Moderate Partial Match, you might want to do a manual check.
What happens if I enter the name Sam Pathak?
The result for the name match will be-
Name at the bank: Suman Agrawal
Name match result: No Match 0%
As I have entered Sam Pathak, it doesn’t match the account holder’s name at the bank which is Suman Agrawal. The last 2 categories i.e Poor Partial Match and No Match should be rejected, as the name provided by the user doesn’t match with the account holder’s name at the bank.
Cross-verifying the user name with the registered name at the bank gives you an additional layer of security that you need. It will not only ensure that the payouts are made correct it will also improve your efficiency by automatically returning the percentage of name match.
What is Bank Account Verification?
Bank Account Verification enables you to verify the Registered name at the bank, account number, IFSC code, and phone number.
With Bank Account Verification you can either do a single verification or bulk verification of up to 10,000 merchants via API. You can either do the verification manually or via bulk upload. While doing bulk verification, you can also enable maker and checker flow. All the reports of verification can be accessed in the merchants’ dashboard.
Bank Account Verification can be used for:
- Verification of details before making payouts
- Onboarding Employees
- Onboarding Vendors
Businesses like Zomato, Credfair, Bookmyforex, Khatabook, etc are using the Bank Account Verification for various purposes, like:
- Creditfair uses Bank Account Verification before dispatching student loans.
- Bookmyforex uses Bank Account Verification for instant verification of money exchangers.
Make secure bank transfers with Bank Account Verification today! Try Now
More about the Verification Suite by Cashfree Payments:
UPI Verification
Cashfree Payments provides instant means to verify if the given UPI ID is valid and shows the account holder’s name. Verify any number of UPI ids of individuals or entities with Cashfree Payments.
Bank Verification
Verify the bank account details of users individually or in bulk via APIs and excel upload, and make sure your next payment is going to the right beneficiary..
PAN Verification
Cashfree Payments allows merchants to do a single verification or a bulk verification of up to 10,000 PANs via API. View details like PAN type, name of the PAN holder, verification status, and more, of all PAN numbers verified for the given range.
Aadhaar Verification
Cashfree Payments enables merchants to verify if the given Aadhaar number is valid and shows the details like the User’s name, Age band, Gender, State, and last 3 digits of the mobile number. You can either verify your Aadhaar number manually or integrate the powerful APIs with your existing products.
Activate the complete Verification Suite by Cashfree Payments and use it with Payouts to ensure accurate payouts every time.
Get started with Verification Suite now!
Know all about preauthorization on card payments and how it benefits customers and businesses receiving online payments
