What is Reverse Penny Drop?

After digitalization, we are using online transactions to buy everything. But, with the increasing number of online transactions, fraud cases are also increasing. This huge number indicates that high-security action should be taken for financial loss prevention. Even with huge losses customers want quick and seamless digital transactions. However, a proper bank verification like the reverse penny drop method helps reduce the chances of financial loss. In this following guide, you will get to know about the penny drop verification method in the banking sector.

Penny Drop Verification Methods Explained

Bank uses various methods to verify the bank account, here we have provided the widely used once

Penny Drop

Penny drop also refer as the penny drop test, this method is used to verify the legitimacy of the bank account. In in penny drop india method, one rupee is sent to the users’ bank account. The main purpose of sending one penny is to confirm the active status of the bank account. This bank account verification method confirms that you have accurate bank details of your bank account and facilitates smooth transactions. 

Reverse Penny Drop

Reverse penny verification is similar to penny drop but slightly different here is how. In this case, a user sent 1 rupee to the bank after receiving confirmation bank refunded one rupee to the user again. This whole process ensures that the bank gets the right bank details.

Penny Less

Penny Less bank account verification method is great for verifying the bank account details without involving money transactions from bank to user or user to bank. It simply involves the use of advanced tools like Bank account verification API to verify the details of the user.

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Real-Life Use Cases Of Reverse Penny Drop

Here is the list of use cases where reverse penny is an important process.

Online Onboarding

Online platforms that provide facilities like money lending, loans, and payment gateway can use reverse penny drop verification. It will ensure that the account information provided by the user is real.

Recurring Payment Services

The subscription-based model uses reverse penny-drop verification to reduce transaction failure that occurs with inaccurate bank account user details.

Fintech Penny Drop

The reverse penny method is essential to check the bank account in the fintech industry. Fintech companies use penny-drop verification to make sure the bank accounts connected to them are real and active. In simple words, reverse penny adds extra security and accuracy to the verification process.

Advantages of the Reverse Penny Drop Verification

  • Efficiency: The reverse penny verification process streamlines the account verification process by directly sending the money to the author’s bank accounts.
  • Accuracy: Provides a highly accurate verification method with 100% accuracy as account holders send confirmation by sending money.
  • Customer  Experience: Enhances the customer experience by easily verifying the bank account without the involvement of physical visits and manual paperwork.
  • Compliance: Helps financial institutions follow regulatory requirements by ensuring thorough and accurate account verification processes.
  • Integration: Easily integrates with existing banking systems and applications, enabling seamless implementation without interrupting current operations.

Surepass Reverse Penny Drop API for seamless Bank Verification

To simplify the bank verification process Surepass offers Reverse Penny Drop API. This API adds automation to the user account verification process. It eliminates manual work and provides high speed or efficiency in verification.

Surepass use strong technology measures to secure customer data with no chance of data breach. The simple user interface allows anyone can use this without having technical knowledge.

Apart from the reverse penny drop API, Surepass offers full verification suites, especially for banks. It includes KYC and KYB tools for customer verification along with penny drop india tools.

You can use Surepass identity verification and customer onboarding APIs to verify the legitimacy of the individuals and their bank accounts.


To prevent fraud in online transactions, the penny drop method is a simple and effective method to check the legitimacy of bank accounts. Banks use three methods of bank verification penny drop, reverse penny dop and penny less. However, the reverse penny is considered the most effective one. This method is used in online onboarding, recurring payments and as a fintech penny drop. Banks and financial institutions can use Surepass Reverse Penny verification API to add automation and security to this process. 


1. What is the difference between a penny drop and a reverse penny drop?


Difference Reverse Penny Drop Verification Penny Drop Verification
Process The user sends a penny to the bank Bank sends penny to user bank account
Purpose The bank verifies the details and sends back the penny to the user account. Check account is active or not.

Bank details are accurate or not.

Verification In this process bank gets the correct details of the user account. This process confirms the bank account is valid.


2. How to do penny drop verification?

You can use the Surepass Reverse penny drop API to check the legitimacy of the user’s bank account.

  • Just enter the IFSC Code and account number of the user. 
  • API will automatically send the penny to the user account and verify the bank account details. 
  • If the verification fails, API will provide the status that the account is invalid.


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We have helped 200+ companies in reducing Fraud by 95%

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