Clients of StoneX’s payments business, StoneX Payments, will benefit from the adoption of Swift’s pre-payment validation technology.
Swift recently introduced its Payment Pre-validation service, which allows for the verification of beneficiary account details before initiating international payments. While such verification has long been commonplace for domestic payments in several countries, it was not so for cross-border transactions as they are more complex and often involve one or more intermediary banks. This novel service aims to reduce errors, expedite transaction speed and improve straight-through-processing, resulting in a more seamless customer experience.
StoneX Payments facilitates foreign exchange payment transactions in more than 140 currencies and spanning over 180 countries. A distinctive feature of StoneX Payments is its extensive network of over 350 correspondent banking relationships worldwide, each maintained independently. These relationships are leveraged to provide the effective and secure execution of cross-border payments, particularly in regions where transparency is often limited.
Swift’s Payment Pre-validation service introduces many significant enhancements to cross-border payments, including:
- Real-time validation of beneficiary account details: This feature enables banks to verify beneficiary account information, such as account numbers and BIC, in real time, preventing transaction failures caused by inaccurate information
- Standardized error codes: Pre-defined error codes expedite the identification of problematic or risk-prone transactions before payment initiation
- Verification of recipient bank’s Swift BIC: Ensuring the accuracy of the receiving bank’s BIC reduces transaction delays and misdirection
- Improved data quality: Structured and standardized payment data enhances data quality and facilitates transaction processing.
