Consigning Payment Errors to the Past

But mistakes do sometimes happen, and even small errors can cause big problems. A misspelt name, one zero too few or too many, and incorrect currencies are among the most common causes of cross-border payment delays.

But what if it was possible to use data from past transactions to ensure that future payments flow smoothly? This principle underpins the latest feature of Swift’s Payment Pre-validation service – central beneficiary account verification. Using aggregated and pseudonymized data, the new service compares data inputted into new transactions with ones that have already been successfully completed, making sure the transactions are free of errors that could cause delays later down the line.

By centralizing the verification of transaction data, no single bank is limited by its past transactions. On the contrary, they can cross-check payment information with all transfers made by the rest of the financial community through the Swift network – over nine billion transaction messages and four billion accounts every year. With the ability to pre-validate payments in real time, banks around the world can ensure that transaction details are correct the first time a message is sent and eliminate friction that causes delays.

Roger Inderbitzin
Head of Swift Switzerland & Liechtenstein