Customers of StoneX’s payments business, StoneX Payments, will benefit from the adoption of Swift’s prepaid validation technology.
Swift recently introduced the Payment Pre-validation service, which enables verification of payee account details before international payments are initiated. While this verification has long been common for domestic payments in many countries, it has not been the same for cross-border transactions, which are more complex and often involve one or more intermediary banks. This new service aims to reduce errors, accelerate transaction speed and improve prompt processing, resulting in a more seamless customer experience.
StoneX Payments facilitates foreign exchange payment transactions in over 140 currencies spanning over 180 countries. A special feature of StoneX Payments is its extensive network of over 350 correspondent banking relationships worldwide, each independently maintained. These relationships are leveraged to provide efficient and secure execution of cross-border payments, particularly in areas where transparency is often limited.
Swift’s payment pre-validation service introduces several important improvements to cross-border payments, including:
- Real-time validation of beneficiary account information: This feature allows banks to verify beneficiary account information, such as account numbers and BICs, in real-time, preventing transaction failures caused by inaccurate information
- Standard Error Codes: Predefined error codes speed up the identification of problematic or risk-prone transactions before payment is initiated
- Recipient Bank Swift BIC Verification: Ensuring the recipient bank’s BIC is accurate reduces transaction delays and misdirection
- Improved data quality: Structured and standardized payment data improves data quality and facilitates transaction processing.