FAQs - User verification

Reverse penny pull FAQs

1. What is PennyPull (Reverse Penny Drop Verification)??

PennyPull or Reverse Penny Drop Verification is a system that allows merchants to verify bank account details by initiating a small transaction (penny drop) and confirming it with the account holder. After successful verification, the amount gets reversed, i.e., credited to the beneficiary account.

2. Who can use the Penny pull product of Decentro?

Any registered Indian business (merchants) can use the Penny pull capabilities of Decentro to verify bank accounts from individuals or businesses.

3. Why do businesses need to verify Bank Accounts?

Penny pull verification is done for numerous reasons but mostly to verify that the customer’s bank account is authentic and belongs to the customer signing up for the service before transacting on it (e.g., transferring money by businesses). In India, for many financial services involving bank account deposits (e.g., Mutual Funds, Insurance, Lending, etc.), verifying users’ bank accounts as part of KYC due diligence is a regulatory requirement.

4. What is the meaning if a Penny pull intent link status is 'Pending'?

Decentro passes back the status of a Penny pull intent link as 'Pending' in the GTS API if the link is not authorized and the amount (₹ 1) is not paid by the payer (customer).

5. What is the meaning if a Penny pull intent link status is ‘Success’?

Decentro passes back the status of a Penny pull intent link as ‘Success’ in the GTS API if the link is authorized and the amount (₹ 1) is paid by the payer (customer).

6. Is initiating the Intent link API for the same ‘reference_id’ possible?

No. It is not possible to initiate the Intent API for the same ‘reference_id’. You must pass a new ‘reference_id’ in the request body to initiate the Intent API.

7. Can I pass an amount apart from 1 INR as part of the flow?

No. It is not possible currently to pass an amount apart from 1 INR since the objective of this API is fetch the payer's bank account details.

Validate Bank Account FAQs

1. Who can use the bank account validation capability of Decentro?

Any business that has a requirement of validating a bank account of an user or 3rd party on their platform can use the capability.

2. Can I use both penny drop and penniless capability of Decentro?

Very much. Decentro's stack is designed in a way that can be leveraged to undertake either penny drop or penniless based validation.

3. Which banks are supported by penny drop?

Decentro's penny drop capability is supported by almost all the banks in India which has IMPS capabilities integrated at their end.

4. Does Decentro work with banks to provide these capabilities?

Yes. Decentro has partnered with multiple banks in the backend to power these capabilities to ensure performance is optimized for best experience.

5. Which banks are supported by penniless verification?

Decentro's penniless capability is supported by all the banks in India which has IMPS 2.0 capabilities integrated at their end.

6. What happens if the validation status is inconclusive, pending, or unknown? What further actions need to be taken

If the account status is inconclusive, this is due to technical errors from the banking partners who did not provide the correct status. The validation can be retried after some time. Any debts that have occurred will be reversed back to the virtual account after reconciliation from Decentro.

7. Where can i monitor the debits that have taken place from the validation?

Platforms can utilise Decentro's Account Balance callback for real-time updates on the debit and credits. Decentro also provides Get Statement API to fetch the list of transactions that have taken place. Alternatively, Decentro's Dashboard can be used to view the status of each validation and perform validation of bank account.