According to the company press release, most cross-border payments are processed without issue, but one of the leading causes for those that fail or lose time is incorrect beneficiary information – from misspelled names to transposed account numbers. And because they are detected late in the process, these issues can be among the most time-consuming and costly to resolve. SWIFT’s Payment Pre-validation service tackles this problem by allowing a sending bank to confirm account details, via an API, with the receiving bank from the very beginning of the process so that any data or account problems are identified right up front. This check is similar to what already occurs in some domestic markets except the SWIFT service will go much further — solving the issue for up to 11,000 institutions and 4 billion accounts in 200 countries.
SWIFT developed the Payment Pre-validation service in cooperation with financial institutions, and a number of banks have already signalled their commitment to the service. Over the next two years and beyond, SWIFT is planning to enrish its service offer, among which Payment Pre-validation will be released in November 2022.
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