Check Digit Verification (CDV)
Check digit verification (CDV) is a service that verifies that a given bank account number ‘matches’ a specified bank and bank branch; i.e., the number itself conforms to the expected format and range for that bank.
Bank customers who wish to make a payment to an account at another bank may inadvertently enter an incorrect account number. CDV acts as an extra safety check that allows a bank to detect whether the number is incorrect before they actually try to process the transaction through BankservAfrica, as the failed transaction would incur unnecessary fees for the bank.
CDV and AVS-R
Do not confuse CDV (check digit verification) with AVS-R (account verification).
AVS-R checks the actual details of an account and account holder, to see whether an account is still valid, belongs to a certain individual, and allows for a particular transaction. AVS-R is typically actively requested by an entity loading a debit order (or salary payment run) or by an individual wanting to make a payment.
CDV focuses only on ensuring that an account number conforms to the algorithm of a given bank.
NOTE: Electrum’s AVS-R service includes CDV as a standard function in the list of checks performed.
A CDV request must contain at least an account number and a bank branch. During the check digit procedure the following will happen, in order:
- A check on the validity of the bank branch.
- Determination of the account type (if not specified in the request).
- A determination of whether the account number is check digit verifiable.
- A mathematical formula applied to the account number. If the account number is valid for that bank and branch, then the formula will yield a particular, expected result.
Important
As CDV is a mathematical procedure, it is still possible that an incorrect account number can be falsely validated if that incorrect number happens to conform to the bank’s rules. In such a case, even though the CDV itself will be successful, payments made against that (incorrect) account number will be declined by the authorising bank.
CDV as a function is included as a standard check for other services like EFT and AVS-R. It is mandatory to do CDV for every single outbound EFT payment that must be processed, for instance. However, Electrum also offers CDV as a standalone service that does not require processing through BankservAfrica. A participating bank can perform CDV at will; for example, when a customer loads a new beneficiary. The bank would want to check that the new beneficiary's number has been correctly entered so that future payments can go through seamlessly.
You can make use of Electrum’s CDV Service as an additional safeguard for your banking customers who wish to effect payments against bank accounts held at other banks.