PAN Verification with Pan Card Verification API: Updated Guide

Businesses are looking to do bulk PAN verification left, right and centre. 

From vendor onboarding to KYC, verifying PAN is almost a necessity for most market players. 

And because this is such an important topic, we decided to share our two cents. 

This blog will explain the uses of PAN verification and how you can use PAN card verification API.

So, what are we waiting for?

Let’s jump right in!

PAN Verification with Pan Card Verification API

What is PAN Verification?

PAN verification allows you to cross-check the PAN details of any individual or business with government records.

Now, PAN card verification APIs allow you to do the same instantly. 

For instance, Cashfree Payments helps you do bulk PAN verification through APIs in real-time. You can get access to information like:

  • Validity of PAN number 
  • Name as per the government records
  • Name actually printed on PAN card
  • PAN Type (Business or Individual)
  • Verification ID 
  • Father’s Name

You may need PAN card verification for various reasons. For instance:

  • Onboarding vendors
  • Onboarding employees
  • Transferring funds or process payments
  • Required for KYC
PAN Verification with Pan Card Verification API

We will be covering this in detail. 

But before jumping to that, let’s have a look at the format of a PAN card number.

PAN Card Format

A PAN card number is a unique ten-digit alphanumeric number issued by the governmental body of the Income Tax Department of India.

It is issued to all taxpaying entities. Hence, it includes individuals as well as businesses.

The PAN card includes information like:

  • The PAN number
  • Name
  • Address
  • Date for Birth (For individuals)
  • Date of Registration ( For Businesses)

However, the PAN format adheres to a carefully crafted structure. Interestingly, it includes a lot of information regarding the PAN owner. 

PAN Verification with Pan Card Verification API

For starters:

  • The first five letters of the PAN are alphabets.
  • Then, we have 4 numerals
  • Finally, one letter at the end

Now, the fourth character of the PAN is supposed to represent the type of PAN. Each PAN holder type is defined by a particular letter. 

Letter Used To Signify
AAssociation of persons (AOP)
BBody of Individuals (BOI)
CCompany
FFirm
GGovernment
HHUF (Hindu undivided family)
LLocal authority
JArtificial juridical person
PPerson (Individual)
TTrust (AOP)

The fifth character of the PAN is supposed to represent:

  • The first character of the surname of the individual in the case of a “personal” PAN card.
  • The first letter of the name of the organisation, company, society or entity. It also represents the first character of the name of a Hindu Joint Family, judicial person government or any local authority. 

The last or tenth character is used as a check-sum to verify the validity of the current code.

Online PAN Verification: Step by Step Guide For Bulk PAN Verification

We have established just how important PAN card verification is.

Now, you wouldn’t want to manually undergo PAN number verification, would you?

After all, this exercise is almost impossible for big and medium businesses. Not to mention, inefficient. Especially, given the number of vendors, employees and customers. 

This is where PAN card verification API comes in. 

Cashfree Payments allows you to do bulk PAN verification in a matter of seconds. Well, 10,000 PANs at once, to be exact.

Having said that, let’s understand PAN verification API works up close.

Verifying PAN Validity: How To Verify PAN Number

For starters, you can use the Cashfree PAN card verification API to check if the PAN exists. 

All you have to do is use the Verify PAN Sync API. (POST /pan)

In response to a valid PAN, you will get access to the following information:

  1. The name associated with the PAN number
  2. The PAN type (Business or Individual)

Want to dive deeper?

Well, here you go.

Parameters of Cashfree PAN verification API

Furthermore, the API request should contain:

  1. The PAN card number: which should have a total of 10 characters. Like we mentioned before, the first 5 characters are alphabets. This is followed by 4 numbers and lastly, one alphabet, in that order.
  2. Name of the PAN owner: While submitting the name of the PAN owner, only use alphabets and period (.) as characters. Space between characters is also allowed.

Now, there can be only three kinds of responses to this API request:

Either the verification is successful. In this case, we have three possible outcomes.

  • PAN Card is valid and belongs to a business
  • Or PAN Card is valid and belongs to an individual
  • PAN Card is not valid

On the other hand, PAN verification can be unsuccessful as well. Essentially, this means that Cashfree Payment was unable to verify the pan card.

This could be because of any of these 4 issues: 

TypeError CodePAN Verification Failed As:How To Resolve It
internal_error500There is an error with the internal system. Wait and try again so the system can process the request
authentication_error401Your merchant account with Cashfree Payments cannot be authenticatedEnter your correct ClientID
validation error422You have insufficient balance to process the requestTop up your Cashfree Payments Payout wallet to process request
rate limit error429If the number of requests/min crosses a particular configured threshold, the system can show a rate limit errorIn case you need to increase the configured threshold, you can reach out to the support team

But what if you want to check the status of your verified PAN? 

Well, the Cashfree Payments PAN Card verification API can help you here as well.

Checking PAN Verification Status

You can use the Get PAN Verification Status API to check the status of your PAN verification. (GET /pan/{referenceId} ) 

Once you have verified a PAN, a PAN verification ID will be generated. This will be labelled as reference_id. Consider this as your unique pan verification number.

Let’s have a look at the parameters involved in the PAN verification API in this case:

Now, you can get 3 possible responses in return for this API:

  • PAN card is valid
  • PAN card Is invalid
  • System is unable to verify

Let’s say the PAN verification API has encountered an issue. 

This could be because of any of these 3 errors:

CodeTypePAN Verification Failed As:How To Resolve It
404not_found_errorYour Reference ID has the right format However, it is the incorrect IDCheck your reference ID and enter the correct ID again
400validation_errorThe format of your Reference IDIs wrongYou are using a reference ID that does not exist. Check reference ID for accuracy.
500internal_errorRequest failed due to internal errorWait and try again

Now, this is all well and good. However, as a merchant, we’re sure you want to know about bulk PAN verification.

Cashfree Payments’ PAN card verification API has a solution for that too!

Bulk PAN Verification

First, let’s start with a simple question.

What is Bulk PAN Verification?

Businesses and larger enterprises require a lot of PAN verification. They might require:

  • PAN verification with name
  • PAN verification with pan number

Now, verifying each PAN number manually is not a feasible option. In this case, a PAN card verification API can help automate the process. 

Now that we know this, here is another ~equally important~ question. 

How to do bulk pan verification? 

Well, follow our lead. 

You have to use the Verify Bulk PAN API for bulk PAN verification (POST /pan/bulk)

Having said that, let’s have a look at the parameters involved in bulk PAN verification API:

  • The bulk_verification_id is a unique ID for your bulk PAN verification, It can include alphanumeric characters and underscores
  • You can get an array of PAN details verified. However, it is important to mention the object’s PAN number and name

You will get a:

  • Response 200 in case of successful bulk PAN verification
  • Response 400 in case of validation and internal error

Want to have a look at the error codes in detail?

Error Code
TypeVerification Failed As:How To Resolve It
400validation_errorSome of the PAN entries are incorrect.Ensure accuracy of incorrect PAN entries 
500internal_errorBulk PAN verification request failed due to system errorWait and try again

Now, it is also possible that you want to verify the status of your previous bulk PAN verification request. 

Here’s what you do in such a situation.

Checking Bulk PAN Verification Status

Use the Get Bulk PAN Status API to get the status of your previous PAN verification request. 

(GET /pan/bulk?bulk_verification_id&reference_id)

Here are the parameters involved:

Now, two IDs are generated when you use the bulk PAN verification API. 

  • A bulk verification ID (bulk_verification_id) is generated when you upload the file.
  • A reference ID is labelled as reference_id. This will help you verify each individual PAN number.

In response to this API, you will get all the details associated with the PAN cards. These details include:

  • The name registered with the PAN card number
  • Status of PAN card (Valid or not valid)
  • Date of issue 
  • Type of PAN card (Business or Individual)
  • Reference ID for every individual PAN card

In case, the card is valid, you will get a 200 response with a list of PAN verifications.

In case of an error, you will get a 500 response

Now, your pan verification process wouldn’t be complete without complete information on the error codes as well. 

Well, here you go. 

Error CodeTypeBulk PAN Verification Failed As:How To Resolve It
500internal_errorBulk PAN verification failed due to a system errorWait and try again in some time
404not_found_errorThe reference ID is incorrectEnter the correct reference ID 
400validation_errorThe reference ID pr Bulk Verification ID is emptyEither enter the correct reference ID or the Bulk verification ID

Now, what if you want access to the pan verification details?

In that case, you can easily generate a report from Cashfree Payments dashboards. 

Let’s show you how. 

Accessing PAN Verification Reports After Using PAN Verification API

Cashfree Payments lets you access a user-friendly dashboard that will help you access all the PAN verification details.

This PAN verification report will list out all the PAN card numbers you have verified. In addition, it will list out all the important details like:

  • The Validity of PAN card number
  • The PAN type
  • The name registered with the PAN number
  • The Father’s Name in the official record
  • The exact time of verification

You can download the PAN verification report by following these simple steps.

  1. Login to the Cashfree Payments Merchant page.
PAN Verification with Pan Card Verification API
  1. Head on to the Payouts Dashboard and click on Access
PAN Verification with Pan Card Verification API
  1. Click on the Reports field and select the information you require in the PAN verification report.
  2. Click on Generate Report.
PAN Verification with Pan Card Verification API
  1. You can specify the name for a name for the report. Moreover, you can select the file format. We support .csv and .xls files. 
  2. You can also choose to specify the date range for the PAN verification report. 

In these simple steps, you can use the Cashfree Payments platform for bulk PAN verification. 

Who Requires Bulk Pan Verification Services?

You remember when we mentioned we will discuss the PAN verification uses in detail?

Well, here we go. 

To understand the use of PAN verification, we need to understand who benefits from it. 

Here are a few examples. 

PAN Verification with Pan Card Verification API: Who can use PAN verification services

Marketplaces For Onboarding Vendors

Marketplaces like Amazon and Nykka require PAN card verification for KYC compliance. 

For starters, it acts as proof of identity for the vendor. 

In fact, a company needs to showcase their certificate of registration attested by “Apostille” in India, Moreover, they require a certificate that permits them to set up an office in India. 

As a marketplace, this helps you verify the legal identity of your vendor. 

Furthermore, in the long run, it prevents fraudulent activities and scams. 

Medium and Large Sized Businesses For Onboarding Employees

For small businesses, manually verifying bulk PAN entries may be a feasible option.

However, this does not hold true for most medium and large businesses. 

Businesses can use PAN card verification API to automate their onboarding process. 

Firstly, it acts as proof of identity for the employee. 

Moreover, PAN acts as an identification factor to track taxable transactions. In this case, PAN verification can prevent tax evasion. 

Thereby, protecting the employer from any legal complications.

Loan Providers For Disbursing Payments

Loan providers need to verify the identity of their customers before disbursing the amount. 

This KYC verification acts as an authentication factor and helps prevents fraudulent activities.

Wallets For Onboarding Customers

E-wallets like Paytm and Amazon Pay have garnered a lot of customer attention recently. 

In fact, it is estimated that the e-wallet transaction value crossed INR 35 trillion in India. Moreover, this value is set to triple by 2024. 

More and more customers are move to e-wallets for their ease of online transactions. As a result, mobile wallet companies need to onboard thousands of customers daily. 

Here, pan card verification API can help. 

Wallet companies can verify PAN during KYC procedures or customer onboarding. They can onboard customers faster and provide a better user experience as well. 

Payments or Fintech Companies for Funds Transfer

The income tax department in India has made some pretty strict rules to prevent tax evasion, 

For instance, customers need a PAN card for:

  • Buying mutual funds or bonds that are worth more than INR 50,000. 
  • Payment exceeding INR 50,000 to pre-paid instruments in a financial year 
  • Paying more than INR 50,000 for a premium of life insurance
PAN Verification with Pan Card Verification API

As a direct consequence, fintech and asset management companies need to do PAN verification before transferring any funds.

Payment aggregators also require PAN verification for processing payments. 

Needless to say, the uses of PAN verification are endless. Especially in today’s world where most KYC and onboarding processes are going digital. 

However, a business’ identity verification needs may go beyond just PAN card verification.

Speaking of which…

Identity Suite By Cashfree Payments

Apart from PAN card verification, Cashfree Payments offers 3 other services:

Bank Account and IFSC Code Verification

A large percentage of failed bank transfers are due to incorrect bank account details. 

To solve this pain point, Cashfree Payments has tied up with 600 Indian banks. It provides bank account and IFSC code verification support.

This helps merchants verify bank account details before onboarding customers. Consequently, this reduces bank transfer failures in case of payouts or refunds.

Furthermore, the exhaustive list of IFSC codes is updated on a weekly basis. This helps merchants verify the IFSC code validity and map it to the respective bank name and branch.

UPI Verification

Cashfree Payments also helps merchants verify the VPA in UPI or UPI ID. 

In case the UPI ID is valid, it cross-checks the object’s name with the name in the bank records.

What’s more, UPI ID verification by Cashfree Payments is extremely user friendly.

  • It works in real-time and 24×7
  • It allows merchants to upload excel files via dashboards
  • Merchants can also use API for complete automation
PAN Verification with Pan Card Verification API

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