Penny Drop & Penny-Less Bank Account Verification API and UPI ID Verification API by planapi.in

In India’s fast-moving digital payments ecosystem, speed alone is not enough. Accuracy, trust, and fraud prevention are equally critical. Whether it is salary payouts, loan disbursals, refunds, or marketplace settlements, a single incorrect bank or UPI detail can result in failed transactions, financial losses, and poor customer experience.

This is where Bank Verification API and UPI Verification APIs become essential.

planapi.in, a flagship product of EZYtm Technologies, provides Indian businesses with a complete payment validation solution, offering both penny drop and penny-less bank account verification APIs, along with highly reliable UPI ID verification APIs, all under one unified platform.

Why Bank Account and UPI Verification Are Critical in India

India processes billions of digital transactions every month. With such scale, even a small percentage of errors can lead to massive operational and financial risks.

Businesses commonly face challenges such as:

• Incorrect beneficiary bank details
   
• Fake or inactive bank accounts
   
• Invalid or non-existent UPI IDs
   
• Failed payouts and chargebacks
   
• Payment fraud and impersonation

Using a bank account verification API and a UPI verification API ensures that money is sent only to valid and active accounts, protecting both businesses and end users.

What Is Bank Account Verification?

Bank account verification is the process of validating whether a bank account exists, is active, and belongs to the intended beneficiary before initiating a payment.

planapi.in supports two industry-standard methods:

1. Penny Drop Bank Account Verification API

In the penny drop method, a small amount (usually ₹1 or less) is transferred to the beneficiary’s bank account. The API then verifies:

• Account validity
   
• Beneficiary name
   
• Successful credit confirmation

This method is widely used for high-value payouts and sensitive financial transactions.

2. Penny-Less Bank Account Verification API

The penny-less verification API validates bank account details without transferring any funds. It offers:

• Faster verification
   
• No reconciliation overhead
   
• Cost-effective validation for bulk use cases

Both methods are available via planapi.in’s bank verification API, allowing businesses to choose the approach that best fits their workflow.
 

Read Also: What Is Aadhaar OTP Based Verification?

How Bank Account Verification API Works

The process is simple and fully automated:

1. User or system submits the bank account number and IFSC code
    
2. The API validates the details against banking systems
    
3. Beneficiary name and account status are returned in real time

This eliminates manual checks and reduces dependency on customer-provided documents.

Key Benefits of Bank Account Verification API

1. Instant Beneficiary Name Confirmation

Businesses can confirm that the bank account belongs to the intended recipient before making a payment.

2. Reduced Payment Failures

By validating accounts upfront, failed transactions due to incorrect details are drastically reduced.

3. Lower Fraud Risk

Fake or mule accounts are detected early, preventing fraudulent payouts.

4. Ideal for Bulk Verifications

planapi.in’s infrastructure is built to handle high-volume verifications without performance drops.

5. Faster Operational Workflows

Automated verification removes delays caused by manual checks and reprocessing.

Understanding the UPI Verification API

UPI has become India’s most popular payment method. However, incorrect or fake UPI IDs can cause failed transactions and fraud.

The UPI ID verification API helps businesses validate UPI handles before initiating payments or collections.

With planapi.in’s UPI verification API, businesses can verify:

• UPI ID existence
   
• Correct beneficiary details
   
• Active UPI handle status

This ensures that transactions are routed to valid UPI users only.

How the UPI ID Verification API Works

1. UPI ID is submitted via API
    
2. The system checks whether the UPI ID exists and is active
    
3. Beneficiary details are returned instantly

This process happens in seconds, making it ideal for real-time payment workflows.

Read Also: What is the Lapu Recharge API?

Why UPI Verification Is Critical for Businesses

1. Prevents Failed UPI Transactions

Invalid or inactive UPI IDs are identified before money is sent.

2. Improves Customer Experience

Users face fewer payment errors, leading to higher trust and retention.

3. Reduces Support and Refund Costs

Fewer failed transactions mean fewer customer complaints and manual interventions.

4. Enhances Fraud Prevention

UPI verification acts as a first line of defence against payment fraud.

Why Choose planapi.in for Bank & UPI Verification APIs

Among multiple verification API providers in India, planapi.in stands out due to its flexibility, affordability, and performance.

1. Supports Both Penny Drop and Penny-Less Verification

Businesses can choose between penny drop and penny-less bank verification APIs based on use case and cost preference.

2. One Wallet for All Payment Verifications

Access bank verification API, UPI ID verification API, and multiple other verification services from a single wallet.

3. Fast API Response Times

Optimised infrastructure ensures real-time responses, even during peak traffic.

4. No Hidden Fees or Long-Term Contracts

No monthly subscriptions, no setup charges, and no lock-in periods – pay only per API hit.

5. Developer-Friendly Platform

• Clear API documentation
   
• Sample integration codes
   
• Testing console
   
• Easy-to-manage dashboard

Use Cases for Bank Account & UPI Verification APIs

Salary & Vendor Payouts

Ensure payments reach the correct employees and vendors without delays.

Refund Processing

Verify bank or UPI details before issuing customer refunds.

Lending Disbursals

Confirm borrower bank accounts before loan disbursement.

Marketplaces & Gig Platforms

Validate seller, driver, or partner payment details at onboarding.

Fintech Payment Validation

Strengthen payment workflows for wallets, payment gateways, and super apps.

Insurance & Claims Processing

Avoid failed claim payouts due to incorrect beneficiary details.

Scalable Payment Validation for Growing Businesses

As businesses scale, payment volumes increase – and so do risks. Manual verification methods cannot keep up with high-frequency transactions.

planapi.in’s bank verification API and UPI verification API are designed to scale effortlessly, supporting:

• High transaction volumes
   
• Real-time verification
   
• Consistent accuracy

This makes planapi.in a reliable choice for both startups and enterprise-level platforms.

Future of Payment Verification in India

With the rapid adoption of real-time payments, regulators and customers alike expect higher transparency and security. Payment validation APIs will continue to play a crucial role in ensuring safe digital transactions.

Businesses that adopt bank verification APIs and UPI ID verification APIs today are better positioned to:

• Reduce fraud
   
• Improve operational efficiency
   
• Build long-term customer trust

Conclusion

In a digital payments-driven economy like India, verifying bank accounts and UPI IDs before moving money is no longer optional – it is essential.

planapi.in, powered by EZYtm Technologies, provides a robust and affordable solution through its bank verification API (penny drop and penny-less) and UPI verification API.

By validating beneficiary details upfront, businesses can reduce failures, prevent fraud, and deliver a smoother payment experience – every single time.