This small-value transaction, commonly called a pennydrop, is a way to verify whether an account is correct and active. Financial institutions and other service providers alike use this process as a check to confirm the accuracy and reachability of the recipient’s account before approving a payment. It helps prevent fraud and misdirected funds.
The pennydrop serves as a non-intrusive verification step to confirm that the account information provided is valid. This protects the initiator from potential fraud or errors. It indicates that someone intends to send a larger payment now or in the future.
No, iPiD does not have access to your personal or financial data. The pennydrop does not grant access to your account or its contents, complies with applicable data protection and privacy regulations (GDPR), and is purely procedural.
We have multiple safeguards in place. Our clients are bound by the service terms through a written contract. They also follow a strict onboarding and background checks. We have automated risk scoring and pattern analysis to prevent misuse, and strict handling requirements for any personal information.
Pennydrops are not linked to a contractual agreements or delivery of services. They are procedural checks to confirm the accuracy and reachability of the recipient’s account before approving a payment. It helps prevent fraud and misdirected funds.
