What is modulus checking?
Modulus checking is a mathematical test that makes sure a sort code and account number combination are valid, according to rules set by the bank. Modulus checking is necessary for ensuring that Direct Debit payments aren’t set up fraudulently or with errors.
Why is it important?
Modulus checking is mandatory when customers sign up for a Paperless Direct Debit (PDD). It’s necessary to handle payments quickly and without error. On average, 1 in 40 sort code/account numbers are entered correctly, and it costs an average of £50 to correct a transaction with inaccurate details, due to wasted company time. (Source: Bacs) Using modulus checking to get it right first time avoids a whole lot of hassle.
It also makes the customer’s experience smoother. BankVal performs modulus checking in real time, meaning that errors are picked up immediately. If incorrect data is submitted to Bacs the payment will fail- and most customers won’t appreciate being asked to correct their details weeks after the fact.
Modulus checking helps your company meet Bacs requirements for Direct Debit compliance. For Paperless Direct Debit Compliance Bacs states that: “ It is the organisations responsibility to verify the customer and validate their details. For example identity, account details, customer address”.
Modulus checking solutions
BankVal is a software solution offered by Unified Software which performs modulus checking on your customers’ sort code and account number in real time, as well as a whole host of other useful functions.
BankVal is a cloud based, maintenance-free API supported by our helpful team of UK based engineers.