Bank checker tools have become indispensable in today's financial landscape, and in iGaming that’s no different. Tools online can for instance provide businesses and individuals with vital means to verify essential banking details before executing transactions. These tools help reduce risks and costs associated with incorrect or outdated information, helping to ensure that funds are directed to the right accounts. They also enhance transaction efficiency, which, as the global economy becomes more interconnected, is increasingly important.
For iGaming companies, bank checker tools are critical for ensuring compliance with regulatory requirements and for maintaining the integrity of financial operations. Accurate verification of banking details plays a crucial role in secure and seamless banking. This article explores the various tools for validating sort codes and account numbers for domestic and international payments. Many of these tools are available to banks, businesses, and individuals for free.
Disclaimer: this article is for informational purposes only, and should not be treated as financial, legal, or any other, advice.
What are bank checkers used for?
Bank checkers are essential tools used by financial institutions and businesses to verify bank account details before transactions are executed. These tools play an important role in ensuring the accuracy of financial data, and can prevent costly errors and delays.
Verifying customer details
The primary purpose of bank checkers is to conduct bank account validation searches. This process involves verifying client account details to check that they are accurate and up-to-date before any financial transaction is made. By confirming the validity of bank accounts, these tools help prevent transactions from being sent to incorrect or non-existent accounts, which can lead to significant financial losses and operational inefficiencies.
For businesses, verifying customer details helps to reduce the volume of chargebacks, which are initiated by banks when a customer disputes a transaction. Chargebacks not only mean a business may have to repay the disputed funds, but they may also have to pay chargeback fees to their bank. iGaming companies are already acutely aware of chargeback issues as the industry is particularly susceptible to fraud and at risk of encountering high chargeback rates. Indeed, this was one of our unfortunate trends in 2024.
Reducing costs associated with inaccurate information
Inaccurate or outdated banking information can have serious financial implications for businesses. Some estimates have put the cost of inaccurate data for most companies at 15-25% of revenue. Poor quality data and data decay can impact everything from product development to marketing strategies and customer experiences. When payments are delayed or not processed due to incorrect account details, both individuals and payment service providers can incur additional costs. These include the time and resources spent resolving payment issues and potential late fees or penalties.
One report found that in the US, the top 15 banks collectively spend $3 billion (~£2.3 billion) each year on handling and processing disputes related to transactions. These disputes can damage relationships between clients and partners, and merchants and customers. Disgruntled parties may perceive an organisation as unreliable and choose to take their business elsewhere.
Equally significant is the impact that incorrect customer data can have on KYC and AML processes; holding the wrong information could place a business at a greater risk of fraud, as poor quality data could undermine compliance with CFT, AML, and KYC regulations. Ultimately, for iGaming companies operating in a highly competitive market, losing customers through transaction disputes is a risk they cannot afford to ignore.
What are the different types of checkers used by banks?
Checkers perform two main purposes: checking bank account details and checking tax-related details. These are the tools that can be used to help protect the integrity of transactions and make sure every transaction is executed successfully.
Sort code and account number verification
A sort code is a six-digit number that identifies the specific bank and branch where an account is held. In the UK, it is formatted in pairs, such as 22-44-66, where the first two digits represent the bank, and the last four digits identify the branch. This code is essential for routing payments and ensuring that funds are directed to the correct location during domestic transactions, such as bank transfers and direct debits.
An account number is an eight-digit number that uniquely identifies a customer's bank account. Each account number is linked to a specific sort code, allowing banks to accurately process transactions. For example, if someone wants to transfer money to a UK bank account, they will need both the sort code and account number to direct funds to the intended recipient.
Use this sort code checker tool to verify UK sort codes. Verification is free and confirms if an account number and sort code are correct. This tool also provides the IBAN (International Bank Account Number) and the BIC (Bank Identifier Code) connected to the account, plus information as to whether the account can facilitate Direct Debits, Faster Payments, CHAPS, C&CCC Payments and BACS.
A beneficiary account owner verification can also be purchased (for a fee of £2.50 at the time of publishing this article), which is delivered through the Bank Account Verification (BAV) service.
Different countries use different formats and lengths for their sort codes and account numbers. Here are some examples:
- In Austria and Germany, banks use the Bankleitzahl (BLZ) system, which has been incorporated into the IBAN as part of Single Euro Payments Area (SEPA) standardisation. The IBAN in Germany is 22 characters long, while in Austria, it is 20 characters long. Validate IBAN and BLZ details here (German-language website).
- In Australia, banks use the Bank-State-Branch (BSB) code, which is a six-digit number similar to the sort code in the UK. The format for the BSB is 112-333, with the first two numbers representing the bank, the third number representing the state, and the final three numbers representing the branch code. The account number length can vary between six and nine digits. Validate Australian BSB codes here.
- In Canada, banks use the Transit Code, which consists of a five-digit branch number and a three-digit institution number. Account numbers can vary in length, either seven digits long or 11 digits long. Validate Canadian Transit Codes here.
IBAN
The International Bank Account Number (IBAN) is a standardised format used to uniquely identify a customer's bank account across national borders. IBANs are essential for facilitating international transactions, as they provide a consistent and recognizable format for bank account numbers worldwide.
Tools that convert national account numbers to IBANs are invaluable for businesses and individuals engaging in cross-border financial activities. By using these tools, users can ensure that their international transactions are processed smoothly and accurately. Owing to the varying lengths of sort codes and account numbers across different banking systems, the standard lengths of IBANs also differ from country to country.
Use this IBAN calculator to validate and search for IBAN formats. Note that this tool only validates IBAN formatting. Be careful, as this tool doesn’t validate if account details are correct or if an account exists.
To check an IBAN use this IBAN verification tool. This check is offered for free.
The IBAN checker confirms if the details are valid and gives some information about the IBAN, such as the bank branch location.
You can also retrieve the name on the account for a small fee (€ 2.50 EUR at the time of publishing this article) and see which SEPA payment schemes are supported by the bank connected to the IBAN you are validating.
BIC
Bank Identifier Codes (BICs), also known as SWIFT Codes, are used to identify banks globally. These codes, which can be either eight or 11 characters long, provide essential information about the bank's name and country. BICs are a critical component of international financial transactions, as they help direct payments to the correct financial institutions.
Tools that verify BICs ensure that funds are accurately routed, reducing the likelihood of errors in cross-border payments. By leveraging these tools, organisations can enhance the reliability and efficiency of their international financial operations.
Use this BIC/SWIFT Code verification tool to verify BIC details. This checker is free to use and Wise also enables searching for SWIFT codes via bank or via country.
VAT number check
A VAT number is a unique identifier assigned to businesses registered for Value Added Tax (VAT). In the UK, VAT numbers are issued by HM Revenue and Customs (HMRC) and are essential for businesses that exceed the VAT taxable turnover threshold. A VAT checker tool not only confirms the validity of the VAT number but also provides the registered name and address of the business. Ensuring the accuracy of VAT numbers is vital, as using an invalid number can lead to rejected VAT claims and potential penalties.
Use the UK Government’s official GOV.UK VAT number checker to verify UK VAT registration numbers. This service allows anyone to check if a UK VAT registration number is valid, and if so, will provide the name and address of the business to which the VAT number is registered. This service is free to use.
For businesses operating across the European Union, the VIES VAT number validation service is available to verify VAT numbers from EU member states. This service helps businesses ensure compliance with cross-border VAT regulations and avoid issues with disputed invoices and audits.
Use the VIES VAT number validation service to verify VAT numbers belonging to businesses operating within EU member states.
Income tax checker
Income tax checkers are tools designed to help individuals and businesses understand their tax obligations. These tools provide information on income tax rates, national insurance contributions, tax-free personal allowances, and pension contributions. For example, platforms like MoneySavingExpert offer resources and calculators to help users estimate their income tax liabilities and optimise their financial planning. By using these tools, individuals can ensure they are paying the correct amount of tax and taking advantage of available allowances and deductions.
Use this tax calculator from MoneySaving Expert to calculate personal income tax. This calculator is free to use.
Use this tax calculator from Contractor Calculator to calculate tax liabilities for small businesses. This calculator is free to use.
Overall, tools for checking tax-related details are essential for maintaining compliance with tax laws and optimising financial operations. Whether verifying VAT numbers or calculating income tax, these tools provide valuable support for businesses and individuals navigating complex tax landscapes.
Commonly asked questions about bank checkers
Bank checkers are valuable tools for verifying financial information and ensuring smooth transactions. Here are some commonly asked questions about their use:
Are bank checkers free?
Most companies offer limited free searches to allow users to test the functionality of their bank checker tools. Some checkers, like the one provided by IBAN.com permit free IBAN validation, but require a small payment to provide the name of the account holder. Businesses requiring multiple searches will typically need to upgrade to a paid version of their preferred checker tool.
Are bank checkers universally accepted?
The IBAN is a widely accepted standard for international money transfers, used by over 70 countries worldwide. However, it's important to note that IBANs have not been adopted in Canada and the United States. When making transactions to these countries, you may need to include additional information, such as the recipient's account number, routing number, or SWIFT code, to ensure the funds are directed correctly.
Do bank checkers support SEPA transfers?
Yes, bank checkers are particularly useful for Single Euro Payments Area (SEPA) transfers, which facilitate effortless money transfers within the European Union (EU). For example, if you want to send money from the UK to Spain, you would first need to calculate the IBAN from the recipient's bank code and account number. Bank checkers help streamline this process, ensuring that the transfer is executed accurately and efficiently. SEPA transfers exemplify how bank checkers can be utilised to enhance the reliability of cross-border transactions within the EU.
Other checkers and calculators for banks, businesses and individuals
When managing financial operations, having access to the right tools and resources can significantly enhance efficiency and accuracy. Here are some helpful resources related to bank checkers and financial calculations:
Issuer Identification Numbers
The Issuer Identification Number (IIN), also known as the Bank Identification Number (BIN), is a crucial component in the payments industry. It is the first six digits of a payment card number and helps identify the card's issuing bank, card type, and country of origin. This information is essential for fraud prevention and ensuring that transactions are processed correctly. There are a few websites that provide tools to look up and verify these numbers, offering insights into the card's characteristics and the issuing institution.
Use BINDB to verify IIN details. This checker tool provides demo numbers to showcase what sort of results the tool can deliver:
Pension calculator
Planning for retirement requires careful financial planning, and a pension calculator can be an invaluable tool. These calculators allow individuals to estimate their future pension income based on current savings and contributions. This tool helps users understand how much they need to save to achieve their retirement goals and make informed decisions about their financial future.
Use the MoneyHelper pension calculator to estimate future pension income. This tool is free to use.
Money calculating tools
Even as the world transitions to a cashless economy, tools for counting and managing money remain important. Several websites offer a selection of calculators for money management, including currency conversion, loan amortisation, and budgeting. These tools are designed to help individuals and businesses manage their finances more effectively, providing accurate and reliable calculations for a wide range of financial needs.
Use CalculatorSoup’s calculators to assist with a variety of financial calculations. These tools are free to use.
Summary
Bank checker tools are vital for anyone involved in financial transactions, whether for personal or business purposes. By leveraging these tools, users can significantly reduce the risk of errors, fraud, and compliance issues in iGaming, ultimately fostering trust and reliability in financial dealings.
As technology continues to evolve, the functionality and accessibility of bank checkers will likely improve, making them even more essential in the fast-paced world of finance. Embracing these resources not only enhances operational efficiency but also contributes to a more secure banking environment for everyone. For iGaming companies, implementing robust checkers will help to prevent fraud, maintain regulatory compliance, and safeguard both the operator and their players' financial interests.
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The information provided in this article was accurate at the time of publishing. This information is not to be used for trading, investment, legal, financial or any other form of business advice.
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