Error-Free Payments: The Data Validation Tools Your Payment System Needs

As people are more reliant on digital banking tools than ever before and expectations are high for seamless payment processing, payment errors are the bane of financial departments and PSPs. Failed payments are costly, but they are avoidable. We explore the possibilities of an environment of error-free payments and the role of data validation tools.

Data validation tools to help ensure error-free payments


Failed payments cost businesses money

On average, each failed payment can cost businesses £50. And if you’re sending a large number of payments, this can really add up.

Failed payments take time to fix and can cause reputational damage. Expectations for seamless payment processing are high, so reducing and even eliminating payment errors should be a high priority for corporates, financial institutions and PSPs alike.

So, what are the main causes of payment errors and how can you combat them?


Key causes of failed payments

The main causes of failed payments are human error, data degradation and changes in payment data rules and requirements.

Here’s a snapshot of the key stats about payment errors you should know:

Why do payments fail - the reasons [infographic]


Let’s briefly look at each of these causes:

Human error in payment processing

As much as 9% of all payments are subject to human error. Quite a surprising number you might think, but it’s an indicator of the fundamental issues companies face with failed payments. As with any manual, data entry tasks, errors will inevitably be made. The key is capturing the errors before they go too far.

The impact of payment data decay

Up to 35% of data goes out of date each year. And this data degradation accounts for around 6% of payment errors. So, it’s clear that there’s a big onus on organisations to ensure that their database is cleansed and that beneficiary data stored is regularly updated, to improve its accuracy.

FinTech initiatives to meet new demands during the coronavirus

Rules and regulations for sharing and processing bank data differ across the globe and are subject to change. It’s important to keep up to date with the information that’s required when making cross-border payments, otherwise, you’ll run into issues that hold up payments or lead them to fail.

There are modern data validation tools that can address these issues, which we will explore shortly.


How can I reduce payment errors?

The best ways to reduce these payment errors are to:

  • Improve the accuracy of your bank payment data
  • Identify human error before payment processing begins
  • Periodically monitor and update your beneficiary data

So, how do you do this? Through the use of payment validation and data cleansing tools.


What roles do data validation and data cleansing play?

Data validation plays a vital role in improving your STP rate and reducing costly payment errors. Ensuring your payment data is accurate is crucial and an efficient validation process will prevent errors getting through to the payment processing stage.

Manual payment data validation is time-consuming and inefficient, plus it doesn’t ensure you’ll pick up every error. In today’s digital banking age, automation is key. And when it comes to data cleansing and payment validation, automation saves time, prevents missed errors and helps to provide a sustainable process for real-time validation that combats the ongoing challenge of data degradation and changing regulations.

So, let’s look at what automated data cleansing and real-time payment validation look like...


Real-time data validation tools your system needs

At Apply Financial, we’ve developed payment data validation and data cleansing tools that sit within the payment processing journey and offer a seamless way to capture errors before they lead to failed payments or payment delays.

The suite of data validation tools is called Validate, which validate and enrich your beneficiary data in real-time. The Validate system is powered by 66 million data points, which are sourced from the central banks, the banking association, clearing houses, major banks, and other trusted sources. Our cloud-based software then checks and validates your payment data and flags up any inaccuracies and potential issues, whilst providing details of any information required or anything that may lead to any processing delays.

Validate Data Manager | Data validation tool from Apply Financial

Validate Data Manager is a data cleansing tool that enables users to upload single and bulk payment data files. The system can be configured to automatically check and validate these data files periodically, to give you a real-time data validation solution to sit within your payment process.

These data validation tools will help you:

  • Reduce payment delays
  • Prevent failed payments
  • Save time and money
  • Improve reputation
  • Comply with global payment rules
  • Increase STP rate

Validate: Preventing payment errors before they occur

The key to enjoying an error-free payments environment is preventing payment errors before they enter the payment processing stage. That’s what our Validate system does. It identifies the inaccuracies and issues and enables you to fix them and update your data.

Validate data validation products | Apply Financial


Validate is available in browser and API format. Our API is easy to integrate into your existing payment systems and is highly configurable and scalable. Open Banking has encouraged organisations to embrace the use of APIs to enable better integration between systems and remove friction from the payment process.

Learn more about integrating Validate API in this blog: How our Validate API Integration Enables Seamless Global Transactions.


See our payment data validation tools in action

Over 700 companies use Validate, including major banks, financial institutions, corporates and payment service providers, which covers over 180 countries and 220 payment jurisdictions. To see the software in action, get in touch to request a demo, or you can get a free trial of Validate to explore the features and benefits for yourself.

Get a free Validate trial


Apply Financial is a SaaS business, based in London, providing real-time data validation tools to banks, corporates, financial institutions and PSPs. We're a leading developer of cloud-based payments solutions, helping organisations to improve straight-through processing and prevent costly payment errors. Contact our expert team if you’d like to discuss our Validate products or if you have any queries about payment data validation.

Topics: Payment Validation, Cloud-based payment solutions, payment validation API, Validate Data Manager, data cleansing, APIs



We can validate BIC’s for over 220 countries In addition in over 170 countries we can validate domestic and International payment details and suggest changes to help you and your customers stay up to date and compliant with the evolving world of payment legislation and rules. Most of all we continue to add more countries to our Validate solution to present you with the de-facto standard in payment validation.

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