Penny Pull/Reverse Penny Drop 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.