Convera carries out Verification of Payee (VoP) checks before a payment is released, to confirm that the account details and the account holder name match. We do this in partnership with iPiD, a global Know Your Payee verification provider. Where iPiD does not have a direct connection to the receiving bank, it confirms the account by sending a €0.01 credit, known as a penny drop.
The credit is authorised by the payer as part of preparing a payment to you. It is not a charge, nothing is taken from your account, and you do not need to do anything.
For more detail on how the penny drop works, iPiD publishes its own FAQ and a contact form here: https://ipid.tech/pennydrop-faq
We are preparing to migrate to the EPC EU VoP scheme, which will allow us to run these checks without penny drop transactions. Once that migration is complete, the €0.01 entries will stop.