Why the bank account is the weak point
A vendor can be a real, registered business with an active GSTIN and still be paid into the wrong account. The pattern finance teams see most often is simple:
- An email arrives, apparently from a regular supplier, saying their bank has changed.
- It carries a new account number, sometimes with a letterhead or a cancelled cheque.
- The accounts team updates the vendor master and the next payment goes out.
- The real supplier calls a month later asking why they have not been paid.
GST and company checks confirm the business. Only a bank account check confirms that the account you are about to pay belongs to that business.
What to check before paying
| Check | What it tells you | When |
|---|---|---|
| Bank account verification | The name on the account and whether it can be credited | First payment, every change of bank details, large payments |
| GST verification | The vendor's GST registration is active, and its legal name | Onboarding, before claiming input tax credit |
| Company verification | The company is registered and active (from the CIN) | Onboarding of a company or LLP |
| PAN to Udyam | Whether the vendor is a registered MSME (payment terms apply) | Onboarding |
The name returned by the bank account check should match the legal name from the GST or company check. If it does not, find out why before you pay.
How to run it on VerifyAll
- Sign in and open Bank Account Verification.
- Enter the account number and IFSC, and the vendor's legal name as the name to match.
- In seconds you see the name on the account, the account status (active, closed, blocked, frozen or NRE), the bank and branch, and a match score.
- No money is deposited, so nothing appears on the vendor's statement.
- Download the PDF and attach it to the vendor master record or the payment voucher.
Reading the result
- Name matches and the account is active: proceed, and keep the report with the payment record.
- Name is close but not exact (an abbreviation, "Pvt Ltd" missing, a trade name): usually fine, but compare it with the legal name from the GST verification.
- Name belongs to an individual while the vendor is a company: stop and confirm with the vendor on a known phone number. Proprietors sometimes use personal accounts; companies should not.
- Account closed, frozen or NRE: do not pay; ask the vendor for another account and verify that one too.
Make it a rule, not a favour
The control only works if it runs every time. A short written rule for accounts payable is enough:
- No first payment to a new vendor without a verified bank account on file.
- No change of bank details without a new verification and a call-back on a known number.
- Payments above a set amount re-check the account on the day.
Getting started
Bank Account Verification runs from the VerifyAll dashboard, pay per check from a prepaid wallet. For the wider onboarding picture, see how businesses verify vendors and partners, or talk to our team about setting it up for your accounts team.