As part of our Verification of Payee (VoP) checks, we currently use a solution in partnership with iPiD, a global Know Your Payee verification provider. This approach includes a method called “penny drop” verification, where a €0.01 transaction may be used to confirm account details and return the name-match outcome. This will not be debited from your holding balance account.
What you might notice:
Occasionally, you (or your beneficiary) may see a €0.01 credit or debit entry on your account statement.
What’s next:
We are preparing to migrate to the EPC EU VoP scheme, which will allow us to perform these checks without the need for penny-drop transactions. Once this migration is complete, these €0.01 entries will no longer occur.