Counterparty Checks: What to Verify Before You Pay
Five checks stand between a routine payment and a costly mistake.
Table of contents
Key takeaways
- Verify the entity in an official register first.
- Match the bank account name to the registered name.
- Re-verify any change to payment details on a known channel.
- Document each check with a date and a source.
You are about to pay a new supplier. The invoice looks fine. The email reads well.
That is exactly the moment to stop and check. A short pause now beats a long recovery later.
This article lists what to verify, in order. It is general information, not personal advice.
Verify the entity first
Start with the legal entity. Confirm it exists before anything else.
Search the official register for the country involved. In Australia, use ABN Lookup and ASIC. These are free and authoritative.
Confirm the entity is registered and current. Confirm the trading name matches the invoice. A name that almost matches is not a match.
What the register should tell you
- The legal name and status of the entity.
- The registration number and date.
- The registered address.
- Any past name changes.
If the register shows nothing, ask why. A real business answers that question easily.
Verify the identity
An entity is not a person. Check the human behind it too.
Confirm you are dealing with someone who can act for the company. Confirm their name appears in a credible record. Confirm their contact details are consistent over time.
A genuine contact will take your call on a number you already have on file.
A new face with new details and new urgency is worth a second look. Slow the pace and confirm.
Verify the bank details
This is where money is lost. The entity can be real and the account still wrong.
Match the account name to the registered name. Confirm the bank and country fit the deal. Use an account name check service where one exists.
A short verification table
| Check | Pass looks like | Fail looks like |
|---|---|---|
| Entity status | Registered and current | Not found or lapsed |
| Account name | Matches registered name | Personal or unrelated name |
| Contact channel | Known number confirms | Only a new email confirms |
| Payment urgency | Normal timeline | Sudden pressure to pay now |
Any fail is a reason to pause, not to push through.
Re-verify every change
Details change for legitimate reasons. They also change because of fraud.
When bank details change, confirm on a channel you already trust. Call the number from last month, not the one in the new email. Speak to a named person.
This single habit stops most payment redirection scams. It costs a few minutes.
Red flags that warrant a pause
- A change to bank details near payment time.
- Urgency with no clear business reason.
- A new contact you have not dealt with before.
- Email addresses with tiny spelling changes.
- Reluctance to confirm by phone.
One flag may be innocent. Several together raise the risk sharply.
Document the checks
Write down what you checked. Save the register result. Note who confirmed the bank details and when.
A record protects you twice. It slows you down at the right moment. It supports any later claim.
Good records are cheap. The losses they prevent are not.
Verify the entity. Verify the person. Verify the account. Then pay.
Common questions
How long does a basic check take?
A first check often takes under an hour. Re-checks take minutes. This page is general information, not advice.
What if the counterparty refuses to confirm details?
Treat refusal as a warning sign. A genuine party will confirm on a known channel.