HSBC has launched an innovative Payment Pre-Validation API, designed to empower business customers with enhanced security, ease, and confidence in their payment processes. This new API offers advanced capabilities to verify payee details before initiating payments, making transactions faster and more reliable.
Through this API, business customers can access real-time account validation and name matching functionalities. This reduces payment failures caused by inaccurate or incomplete beneficiary details, ensuring smoother transactions. By verifying payee details, the Payment Pre-Validation API also mitigates the risk of fraud, decreasing the likelihood of misdirected payments and fraudulent accounts, thereby enhancing the overall customer experience.
Nadya Hijazi, Global Head of Wholesale Digital Channels at HSBC, stated: “At HSBC, we are committed to empowering our customers with innovative solutions that enhance their financial experiences. The Payment Pre-Validation API represents a significant leap forward in payment validation technology, underscoring our dedication to optimising payment processes whilst safeguarding against errors and fraud.”
This API streamlines the payee account validation process for businesses such as e-commerce merchants and insurance companies, ensuring greater accuracy and efficiency during user registration processes. It also benefits corporate clients by streamlining vendor management workflows through the validation of new vendors’ beneficiary accounts.
The API leverages SWIFT’s global pre-validation service and integrates with existing regulatory schemes such as the UK’s Confirmation of Payee (COP) and similar initiatives in Hong Kong. This ensures comprehensive coverage and reliability for customers sending payments to beneficiaries in these jurisdictions, providing added confidence in the accuracy of account details.
Additionally, SWIFT’s analytics-based solution offers valuable insights into historical transaction data for accounts not currently offering the pre-validation service. This feature allows business customers to verify the validity of beneficiary account numbers, further reducing the risk of fraud and errors.
