#Reverse penny drop

Reverse penny drop for bank account verification on UPI is an industry-first product from Setu for customer bank account validation. This involves the customer making a ₹1 payment to a specific VPA registered for your organisation.

Setu extracts the customer’s bank account information from the transaction and passes it on in a webhook to you. After the credit response, the ₹1 is refunded to the customer’s account within 48 hours.

#Step 1 — Start KYC and business documentation

This is started once Setu’s sales team has interacted with you and confirmed integration. You will need to provide a few KYC details and review some agreements. Please reach out to onboarding@setu.co to get started.

#Step 2 — Get API credentials

Contact Setu on onboarding@setu.co to get credentials.

#Step 3 — Test on sandbox

Setu’s API solution can be used to verify a user’s bank account real-time, with your own screens on your app or website. With this, you will get a shareable UPI deep link and a link to a QR code. Once invoked, it allows your customer to make a ₹1 payment, and provides you with a response in a webhook or when you poll our GET details API. The following section describes the APIs required for enabling this flow.

Please use this postman collection to test Reverse Penny Drop.

API integration

Look at the API integration to proceed.

#Refunds

Setu will refund any successful payment done by a user, after we receive a credit response from our bank partner. This takes between 24 to 48 hours and refunds are handled in batches.

Setu will store account details of the user to handle failed auto-refunds. For failure, the refund will be processed manually. When the refund is settled, a default UPI SMS notification will be sent to the user.

In case an issue arises and you need to contact our support team, please provide the corresponding upi_bill_id so that we can quickly resolve it.

#FAQs

1. How to create PSP specific UPI deeplink?

UPI Deeplink from the response can be consumed to create PSP app specific links. These links directly take user to specific PSP applications when clicked.

Example of a UPI deeplink is upi://pay?pa=rpd@kaypay&.... Modify the deeplinks as below -

2. Are CNRB0000000 and CNRB0000033 valid IFSCs?

All Canara bank accounts seems to have only two IFSC codes configured with NPCI. Some interesting observations:

1. The name returned is correct
2. The account number returned is also correct
3. Penny Drop to account number with CNRB0000000 is successful
4. Penny Drop to account number with CNRB0000033 is successful

Since the money movement happens correctly, these are valid bank accounts.