6 Best Bank Account Validation APIs That Prevent Payment Errors

Payment fraud cost UK businesses over £1.2 billion in 2023, according to UK Finance, underscoring just how critical bank account validation has become for any organisation handling digital payments. With the rise of account-to-account payments through Open Banking, ensuring that bank details are accurate and legitimate isn’t just a precaution; it’s a necessity.

The UK’s Faster Payments Service now processes over 3 billion payments a year, and as the volume of instant transfers continues to grow, so do the risks. Fraudulent and misdirected payments have risen by 18% year-on-year, often traced back to simple errors in account number or sort code entry, or the absence of robust ownership verification at the point of payment.

If your business processes payroll, vendor disbursements, or customer refunds, you’ve likely experienced the consequences of manual validation, i.e payment failures, time-consuming reconciliations, and damaged customer relationships.

Bank account validation APIs solve these issues by confirming both account validity and ownership in real time. Some even use methods like “penny drop verification”, where a small £1 deposit is made to confirm account activity and match the account holder’s name, adding a vital layer of trust before any funds are released.

In this guide, we cover seven of the most reliable bank account validation APIs for UK businesses. Each tool helps you verify bank account ownership, validate UK bank account numbers, and reduce the risk of errors or fraud, while remaining compliant with FCA and Open Banking standards in 2025.

Comparison Table

API Provider	Key Features	Verification Method	Coverage	Notable Advantages	Best Suited For
Finexer	Real-time bank data match FCA-authorised UK infrastructure Go live 3x faster than traditional providers	Open Banking with user consent via secure authentication	99% of UK banks	Built for UK-first compliance Developer-friendly API No setup, hidden, or cancellation fees	High-volume payroll Vendor disbursement platforms Fintech onboarding Compliance-heavy sectors
TrueLayer	Name-matching engine with ML Immediate verification results Detailed verification reports	Open banking with biometric authentication	All major UK banks	22.5% higher success rate vs credit bureaus	Financial services PSPs Trading platforms
Form3	VoP and CoP services Cloud-native platform 3-second verification cycle	Account name checking through PSP network	UK Faster Payments, Bacs, CHAPS	High-speed verification (≤1 second)	Financial institutions Payment providers
Banked	Penny drop verification Real-time confirmation Cross-verification system	Microscopic test transfers	180+ countries	91% success rate on penny drop verification	Financial services Payment processors E-commerce
Crezco	Sentinel ML system Rich data analysis Automatic fraud protection	Open banking with real-time verification	700+ banks across UK/EU	Real-time account information access	Marketplaces E-commerce B2B payments
Modulr	Real-time name verification First non-bank CoP provider Direct bank connectivity	Confirmation of Payee (CoP)	UK banking system	Direct Bank of England settlement accounts	Payroll processing Lending institutions

1. Finexer Bank Account Validation API

If you’re a UK business handling regular payouts, whether it’s payroll, vendor payments, or onboarding new clients, getting the bank account details right is non-negotiable.

That’s where Finexer steps in.

Finexer’s Bank Account Validation API is built specifically for the UK market. It connects directly with 99% of UK banks and verifies account ownership instantly using live Open Banking data. No more delays, no more manual errors, just clear, real-time confirmation that the account is valid and belongs to the person you’re paying.

How It Works

It’s simple:

1. Your user selects their bank and gives consent
2. Finexer securely fetches their account number, sort code, and account holder name
3. The API matches that data to what your system already has
4. You get an instant yes-or-no verification result, with all the details you need

There’s no need for micro-deposits, PDFs, or endless back-and-forth. It just works fast and accurately.

What Makes Finexer Stand Out?

✅ Built for UK businesses – Designed specifically around UK banking rules, not retrofitted from a global product

✅ Real-time results – Get instant verification with no waiting periods

✅ Wide coverage – Works with nearly every bank in the UK

✅ Compliant by design – Built on FCA-authorised infrastructure with full audit logs and consent tracking

✅ Easy to use – Developer-friendly API, clear documentation, and no steep learning curve

✅ White-label ready – Fully brandable if you’re integrating into your own product

Why Businesses Choose Finexer

Finexer isn’t just another verification tool; it’s your shortcut to faster onboarding, safer payouts, and fewer customer complaints. Whether you’re building fintech software, running a gig marketplace, or simply need to verify bank details before releasing funds, Finexer handles it behind the scenes so you can focus on the bigger picture.

Pricing That Actually Makes Sense

Here’s what makes Finexer one of the most affordable bank account validation providers in the UK:

• No setup fees
• No hidden fees
• No cancellation fees
• Flexible, usage-based pricing – you only pay for what you use
• Free support and documentation access included

You don’t need to commit to expensive enterprise contracts just to start verifying accounts. Whether you’re just launching or scaling fast, Finexer fits your budget, without compromising on performance.

Best Use Cases

Finexer works especially well for:

• Payroll teams – Make sure salary payments go to the right employee, the first time
• Vendor and contractor platforms – Verify suppliers or freelancers before disbursing payments
• Fintech and finance apps – Add real-time bank validation to your onboarding flows
• Compliance-heavy sectors – Support AML, KYC, and KYB checks with audit-ready proof
• Accounting platforms – Eliminate bank data mismatches and cut reconciliation delays

In short: If you’re tired of manual bank checks, bounced payments, or time wasted chasing errors, Finexer gives you a smarter way forward. Affordable. Reliable. Built for the UK.

2. TrueLayer Verification API

TrueLayer’s Verification API combines open banking with machine learning to create a name-matching engine that sits atop open banking rails. This London-based solution tackles a common business pain point: slow, error-prone traditional verification methods that often take days to complete.

TrueLayer Verification API key features

TrueLayer’s approach to bank account validation cuts the onboarding timeline from three days to just three clicks. The system works through a straightforward process:

1. Users provide consent to access their banking data
2. They authenticate through their banking app using biometric verification (fingerprint or Face ID)
3. TrueLayer’s name-matching engine compares the user’s provided name with their name on file at the bank
4. The API delivers an immediate verification result

The verification logic matches the name supplied during onboarding with the name held at the bank, giving businesses a single feed that delivers immediate and accurate verification responses.

TrueLayer’s coverage spans all major UK banks, achieving a 22.5% higher success rate compared to traditional credit bureau checks. This ensures businesses can verify accounts across the UK banking system without gaps in coverage.

The system also provides detailed verification reports that include:

• Verification status (true/false)
• Account holder name
• Match score
• Account details (when verified)
• Failure descriptions (when applicable)

TrueLayer Verification API pros and cons

Pros:

• Enhanced security – Embedded Strong Customer Authentication within the bank verification process protects against fraud and identity theft
• Superior accuracy – Success rates over 20% higher than credit bureaus, with results delivered in seconds rather than days
• Improved user experience – Simple redirection to banking app with biometric confirmation instead of manual uploads or micro-deposits
• Reduced payment failures – Pre-verified account details eliminate errors in payment setup
• Reduced compliance burden – Automated verification via a single API call lightens the load on compliance teams
• Developer efficiency – Engineers can focus on core business problems rather than building and maintaining name-check logic

Cons:

• Limited to account verification – Does not handle all aspects of KYC compliance that some businesses might require
• Requires user interaction – Unlike some passive systems, requires users to authenticate through their banking app
• Credit cards cannot be verified – As noted in the API documentation, credit cards fall outside the verification capabilities

TrueLayer Verification API pricing

TrueLayer follows a tiered pricing structure tailored to different business needs. While specific pricing details may vary based on implementation requirements, the general structure includes:

1. Develop Plan – £0/Forever (Free tier for development and testing)
2. Scale Plan – Starting from £258.90/Per Month

For enterprise-level businesses or those with complex financial needs, TrueLayer offers customised enterprise plans with additional premium features, dedicated support, and advanced customisation options.

Pricing factors typically include:

• Number of API calls
• Number of supported banks
• Additional premium features required

For businesses seeking the most accurate pricing, contacting TrueLayer directly for a personalised quote based on specific requirements is recommended.

TrueLayer Verification API best use case

TrueLayer’s Verification API serves multiple industries but particularly excels in scenarios requiring rapid account verification with high security standards. The API is especially valuable for:

1. Financial services providers – Offering faster onboarding without compromising on security
2. Payment service providers (PSPs) – Ensuring payment details are accurate before processing transactions
3. Wealth management and trading platforms – Verifying account ownership for investment accounts
4. Marketplaces – Confirming seller bank details to prevent fraud
5. Property businesses – Validating tenant or buyer banking information
6. iGaming companies – Ensuring regulatory compliance with account ownership verification

3. Form3 Bank Account Validation API

_{Image Source: Form3}

Form3’s Bank Account Validation API brings cloud-native payment verification through a platform specifically built to fight financial fraud. This UK-based payment technology provider has created account validation services that work seamlessly with existing payment systems since its founding in 2016.

Form3 Bank Account Validation API key features

Form3 focuses on two core services: Verification of Payee (VoP) and Confirmation of Payee (CoP). The CoP service works across UK Faster Payments, Bacs Direct Credits and CHAPS transactions, checking account names to ensure payments reach the right recipient.

The validation works through five clear steps:

1. Initiation: The payer provides the payee’s name and account details
2. Preparation: Form3 checks that all required information is present
3. Transmission: The verification request goes to the responding Payment Service Provider (PSP)
4. Verification: The responding PSP compares details against its records
5. Response: Results come back to the requesting PSP and payer

This entire process completes within three seconds – Form3 aims for one second or less in most cases. Such speed helps businesses meet the instant payment response standards that modern financial systems demand.

The system works through a single API interface, letting clients connect directly with banks and payment systems without dealing with complex technical infrastructure. Form3’s integration with Apply Financial’s validation tools enables “100% STP (straight-through processing) rates” according to company statements.

Form3 Bank Account Validation API pros and cons

Pros:

• Enhanced security – Prevents fraud and misdirected payments through name matching
• Regulatory compliance – Meets European Commission’s 2024 Instant Payment Regulation requirements
• Cloud-native resilience – Offers high availability through cloud infrastructure
• Comprehensive coverage – Works with both personal and business accounts across UK payment systems
• Dual-role flexibility – Functions as both Requester and Responder within the verification ecosystem
• Technical simplicity – Single API access point makes integration easier

Cons:

• Regional limitations – Mainly focuses on UK and European payment systems
• Implementation complexity – May need technical expertise for full integration
• Integration timelines – Initial setup might require dedicated IT resources
• Documentation gaps – Some technical details may need direct consultation

Form3 Bank Account Validation API pricing

Form3 uses a customised pricing approach based on individual business needs. While specific pricing isn’t publicly disclosed, their commercial model likely follows industry standards with tiers based on transaction volumes and service levels.

If you’re looking for accurate pricing information, it’s best to contact Form3 directly for a customised quote based on your implementation requirements and expected transaction volumes.

Form3 Bank Account Validation API best use case

Form3’s validation services work particularly well for:

Financial institutions that need to comply with the European Commission’s 2024 update to the Instant Payment Regulation, which requires widespread adoption of Instant Payments and Verification of Payee across Europe by 2025. The platform helps these organisations meet regulatory deadlines without taking on excessive operational burdens.

Payment service providers handling high volumes of UK Faster Payments, Bacs Direct Credits and CHAPS transactions benefit from comprehensive verification capabilities that reduce fraud risk and payment errors.

The service also excels for businesses worried about “customer attrition as consumers increasingly favour institutions that offer enhanced security through verification of payee”. It gives end-users more confidence in every transaction, creating a safer, more reliable payment experience.

Form3’s stand-in capability makes it ideal for organisations needing to “meet Instant Payment response SLAs”, making this API a strong choice for time-sensitive financial operations that need both speed and accuracy in account validation.

4. Banked Verification API

Banked Verification API tackles a critical challenge for UK financial institutions: validating bank account ownership quickly without the typical delays of traditional methods. This solution connects platforms and enables streamlined data exchange that protects both businesses and consumers from payment fraud.

Banked Verification API key features

Banked’s approach centres on real-time validation that eliminates delays found in conventional verification methods:

• Penny Drop Verification – The system makes tiny test transfers (typically £1) to verify account validity with a 91% success rate, confirming accounts are active and accessible
• Real-time Confirmation – Results return in just 2-5 seconds, dramatically faster than traditional methods that often take days
• UPI/IBAN Cross-verification – Checks account details against central databases, functioning like a digital authentication system that blocks fraudulent entries
• Strong Customer Authentication – Bank-grade security confirms user identity through biometric verification, cutting the risk of identity theft
• Pre-transaction Validation – By verifying details before processing transactions, the system prevents fraud and reduces potential losses

The API fits neatly into existing systems, giving businesses the flexibility to deliver personalised services without building verification solutions from scratch.

Banked Verification API pros and cons

Pros:

• Substantial Fraud Reduction – Cuts payment fraud by 60-80%, creating a more secure transaction environment
• Significant Cost Savings – Automation reduces manual verification costs by 30-50%, producing measurable operational efficiencies
• Compliance Automation – Creates automatic audit trails for KYC/AML requirements, simplifying regulatory adherence
• Global Coverage – Works across more than 180 countries, supporting businesses with international operations
• Time Efficiency – Cuts document processing time from days to seconds, speeding up customer onboarding

Cons:

• Data Discrepancy Challenges – Missing digits or outdated information can cause false declines, potentially frustrating customers
• Integration Complexity – Legacy systems may struggle when connecting with modern API architecture
• Privacy Considerations – Balancing security with GDPR data deletion requirements adds complexity
• Banking Infrastructure Dependency – Performance relies on banking networks, which vary in responsiveness

Banked Verification API pricing

Banked offers customised pricing structures based on business volume and specific requirements. While exact pricing isn’t publicly disclosed, the service follows typical industry patterns of volume-based pricing tiers.

The cost-effectiveness comes through its automation capabilities, with documented cost reductions of 30-50% compared to manual verification. This suggests that despite the initial investment, the return through fraud prevention and operational efficiency makes it worthwhile for most businesses.

For specific pricing information, it’s best to contact Banked directly for a personalised quote based on your transaction volumes, verification frequency, and implementation needs.

Banked Verification API best use case

Banked’s solution shows particular strength in several key scenarios:

1. Financial Services – Banks and lenders can verify account ownership before disbursing loans or setting up recurring payments, stopping fraud at the entry point
2. Payment Processing – Payment providers can validate account details before processing transactions, reducing failed payments and administrative costs
3. Gig Economy Platforms – Companies paying contractors or freelancers can verify account ownership, ensuring correct disbursement
4. E-commerce – Online retailers can check customer account details during checkout or when processing refunds, cutting the risk of fraudulent transactions
5. Subscription Services – Businesses with recurring billing can verify account details upfront, minimising future payment failures

The API delivers particular value to businesses facing high volumes of payment fraud or struggling with the burden of manual verification. Its rapid verification makes it ideal for companies where speed and security must work together in the customer experience.

By validating accounts in real-time, the system helps businesses avoid becoming part of the approximately two-thirds of US companies that experienced payment fraud attempts in the previous year, delivering tangible security improvements across the payment ecosystem.

5. Crezco Account Validation API

Crezco stands out in the UK financial market with its Sentinel system – a proprietary machine learning tool that protects businesses from fraudulent payments. This account validation solution uses open banking to verify accounts in real-time while handling compliance and security requirements behind the scenes.

Crezco Account Validation API key features

At the heart of Crezco’s verification capabilities lies Sentinel, a machine learning algorithm that examines millions of data points to spot and block fraudulent transactions. The system works continuously across all Crezco products at no extra cost to users.

The API brings together several powerful components:

• Wide banking network – Connected to over 700 banks across the UK and EU, covering more than 500 million bank accounts
• Deep data insights – Each bank account can contain over 100,000 relevant data points on a single user
• Real-time information – Unlike static bank statement uploads, Crezco delivers 24/7 access to live account information
• Built-in fraud protection – Guards against purchase scams, investment scams, and invoice fraud by ensuring payments reach only legitimate recipients
• Integrated compliance – Built-in KYC and KYB processes protect users from financial fraud, money laundering and terrorist financing

Crezco Account Validation API pros and cons

Pros:

• Instant verification – Direct bank connections provide immediate account validation without delays
• Paperwork elimination – Customers skip filling out forms and submitting bank statements
• Multi-layer security – Specifically built to prevent payment scams through several verification steps
• Regulatory handling – Manages compliance, security, and regulatory requirements automatically
• Developer-ready – Clear documentation and straightforward integration options

Cons:

• User permission needed – Requires customers to approve access to their banking information
• Banking infrastructure reliance – Performance depends on the reliability of banking connections
• Coverage limitations – Though extensive (700+ banks), coverage isn’t universal
• Initial connection required – Users must link their bank accounts once before gaining verification benefits

Crezco Account Validation API pricing

Crezco’s Sentinel system comes included with all Crezco products at no additional cost. This suggests a value-added approach where account validation capabilities are bundled with their payment processing services rather than priced separately.

For businesses needing specific pricing details, direct consultation with Crezco is recommended, as public pricing information is limited in the available material.

Crezco Account Validation API best use case

Crezco’s validation API shows particular strength in situations requiring high security and fraud prevention:

1. Marketplaces – Perfect for platforms that split payments between multiple accounts while verifying each recipient
2. E-commerce businesses – Helps online retailers check customer accounts before processing payments, cutting fraud risk
3. B2B payment processors – Support companies handling regular supplier payments by ensuring funds reach legitimate business accounts
4. Financial service providers – Assist organisations that need to verify account ownership before releasing funds

The system especially shines in cases where manual verification would typically slow down processes. By pulling account ownership information directly from the bank, Crezco removes the need for customers to submit bank statements or other paperwork.

Crezco’s approach combines machine learning intelligence with open banking connectivity to create a system that shields businesses from payment fraud while keeping the user experience smooth and straightforward.

6. Modulr Bank Account Validation API

Modulr stands as the first non-bank or building society in the UK to offer Confirmation of Payee (CoP), giving it a unique position in the financial services landscape. This validation capability provides a strong defence against payment fraud by checking recipient details before money moves.

Modulr Bank Account Validation API key features

Modulr’s account validation works through the UK’s account name-checking service, letting you verify whether your intended recipient’s details match what’s on record at their bank. The system delivers several important capabilities:

• Real-time name verification – Automatically checks that recipient’s name and account details match information held by their payment service provider
• Fraud prevention alerts – Warns you when details don’t match, giving you a chance to confirm information before sending money
• Error reduction – Helps avoid simple mistakes like mistyped account numbers when setting up new payees
• API-driven integration – Works through Modulr’s API for easy incorporation into your existing payment processes
• Direct bank connectivity – Holds settlement accounts at the Bank of England and connects directly to Faster Payments and Bacs

The system works by comparing the payment information you provide against the recipient’s bank data in real-time. While it adds a valuable layer of protection, it’s worth noting it can’t guarantee defence against all types of fraud.

Modulr Bank Account Validation API pros and cons

Pros:

• First non-bank to provide Confirmation of Payee service
• Reduces the risk of sending payments to incorrect accounts
• Protects against authorised push payment (APP) fraud
• Prevents accidental errors in payment processing
• Creates automatic audit trails for your transactions

Cons:

• Cannot guarantee protection against all scam types
• Limited to the UK banking infrastructure
• Requires user decision, even when warnings appear
• Focuses mainly on name verification rather than comprehensive fraud detection

Modulr Bank Account Validation API pricing

If you’re interested in implementing this solution, you’ll need to contact Modulr directly for customised pricing based on your specific requirements and expected transaction volumes.

Modulr Bank Account Validation API best use case

Modulr’s bank account validation service shows particular strength in several key scenarios:

1. Payroll processing – If you’re handling multiple employee payments, this ensures funds reach the right people
2. Lending institutions – Provide a reliable, cost-effective alternative to traditional verification methods by accessing real-time bank data
3. Payment service providers – Helps protect your customers from becoming scam victims while preventing accounts from being used fraudulently
4. Businesses with regular supplier payments – Reduces risk when sending payments to vendors, particularly when account details change

The service delivers particular value to financial services companies, where preventing misdirected payments saves substantial operational costs and protects brand reputation. Its integration with Modulr’s broader payment infrastructure makes it especially suitable if you’re already using or considering Modulr’s payment processing capabilities.

Choosing the Right Bank Account Validation API for 2025

Payment fraud continues to challenge UK businesses, with losses rising annually due to misdirected payments, impersonation fraud, and data entry errors. The six bank account validation APIs explored in this blog each provide robust tools to reduce these risks, offering real-time data access, name verification, and regulatory alignment.

What Each Provider Brings to the Table

• Finexer offers real-time account verification built exclusively for the UK, with 99% bank coverage, FCA-authorised infrastructure, and affordable, usage-based pricing. Its rapid integration makes it a strong fit for high-volume platforms needing to go live quickly.
• TrueLayer stands out for its machine-learning powered name-matching engine, improving success rates over traditional credit bureau checks and providing detailed verification reports for onboarding and payments.
• Form3 delivers cloud-native performance with lightning-fast verification cycles (often under one second), supporting VoP and Confirmation of Payee across UK payment schemes.
• Banked uses penny-drop verification across 180+ countries, offering 91% success rates and suitability for platforms with international payment workflows.
• Crezco leverages its Sentinel ML system to flag fraud risks during account validation, enriching real-time data with behavioural analysis.
• Modulr remains a leader in Confirmation of Payee APIs, as the first non-bank authorised to offer direct CoP access, backed by secure connections to the Bank of England.

How to Choose the Right Solution

When selecting the best-fit API for your business, consider:

• ✅ Bank coverage – Does the provider support all the banks your customers use?
• ✅ Speed and accuracy – Can it return results instantly, and with a high match rate?
• ✅ Ease of integration – Does it align with your development resources and timeline?
• ✅ Compliance readiness – Is it FCA-authorised and suitable for your regulatory environment?
• ✅ Scalability – Can it handle your current volume and projected growth?

For finance, payroll, onboarding, and vendor disbursements, the right bank account validation API should reduce errors, shorten payout cycles, and help meet UK compliance requirements.