Validation Methodology

BankValidor performs structural and institutional verification of international bank coordinates. No payment is initiated, no funds are transferred. Our process relies exclusively on official registries such as the Federal Reserve E-Payments Routing Directory, Pay.UK Sort Code Directory, and the SWIFT BIC Directory used across Fedwire, CHIPS, and global clearing networks.

Three-Layer Validation

Every bank coordinate submitted passes through three independent verification layers, from format checks to institutional registry queries against authoritative sources.

1

Layer 1: Syntax Validation

Verification of format, length, and allowed characters according to the applicable international standards.

  • IBAN format conforming to ISO 13616 (country-specific structure, prefix, check digits)
  • BIC/SWIFT format conforming to ISO 9362 (bank code, country code, location, branch)
  • Exact length and permitted character set (alphanumeric, dashes for UK sort codes)
  • Valid ISO 3166-1 alpha-2 country code in the IBAN or BIC prefix
2

Layer 2: Checksum Verification

Application of mathematical check algorithms specific to each payment system, as used in the Fedwire, ACH, and CHIPS clearing networks.

  • MOD-97 algorithm (ISO 7064) for IBAN check digits, used across all SEPA and international IBAN-based systems
  • ABA checksum algorithm (weighted sum modulo 10) for US routing transit numbers used in Fedwire and ACH
  • Modulus checking algorithm for UK sort codes and account numbers as specified by Pay.UK (Vocalink)
3

Layer 3: Registry Lookup

Cross-referencing validated coordinates against the official databases maintained by regulatory authorities and payment networks.

  • Federal Reserve E-Payments Routing Directory for US ABA routing transit numbers (Fedwire and ACH participants)
  • Pay.UK Sort Code Directory (formerly BACS/VocaLink) for UK sort codes and banking institutions
  • SWIFT BIC Directory (SWIFTRef) for international BIC codes and financial institutions worldwide

What We Do NOT Validate

Our service is limited to structural and institutional verification. The following elements are not checked:

  • Account ownership — we do not verify that an account belongs to a specific individual or entity
  • Account balance or fund availability — no information about the financial state of the account is accessed
  • Sanctions lists (OFAC SDN, EU consolidated list, UK HMT) — we are not a regulatory compliance tool
  • Transaction authorization — no debit, credit, or wire transfer is initiated or authorized

Data Handling

  • No personal data is stored. Bank coordinates are used exclusively for real-time validation and are immediately discarded.
  • Validation logs are anonymized via cryptographic hashing (SHA-256). No cleartext account numbers are retained in any system.
  • Compliant with GDPR (General Data Protection Regulation) and aligned with US data privacy best practices.
  • No data is shared with third parties. Submitted coordinates never leave our processing infrastructure.

Standards & References

ISO 13616

International Bank Account Number (IBAN) — Structure and validation rules used across SEPA, Fedwire, and global payment networks

ISO 9362

Business Identifier Code (BIC) — Identification of financial institutions on the SWIFT network

ISO 7064

Check character systems — Foundation of the MOD-97 calculation for IBAN validation

Federal Reserve

E-Payments Routing Directory — Authoritative source for ABA routing transit numbers used in Fedwire and ACH networks

Pay.UK

Sort Code Directory and modulus checking rules for the UK banking system (BACS, Faster Payments, CHAPS)

SWIFT

Global BIC directory (SWIFTRef) and interbank financial messaging services

Update Policy

  • Institutional registries updated weekly (Federal Reserve Routing Directory, Pay.UK Sort Codes, SWIFT BIC Directory)
  • ISO standard revisions integrated upon official publication (ISO 13616, ISO 9362, ISO 7064)
  • Progressive addition of new countries and payment systems (SPEI Mexico, PIX Brazil, UPI India)