You may have been asked by Rutland FX — or another financial institution — to complete something called a “Penny Test.” If you’re unsure what that means or why it’s required, you’re not alone. In this article, we’ll break down what the penny test is, who it applies to, and why it’s an important part of financial compliance — especially for clients based in the European Economic Area (EEA).
What Is a Penny Test?
A Penny Test is a simple but essential verification step used to confirm that you have access to a valid, active bank account in the name of the registered entity. To complete it, you’ll need to send a small payment — typically as little as €0.01 (or the equivalent in another currency) — from your business or personal bank account, as long as the account name matches the name of the applicant.
This one-time step allows us to verify ownership of the account and meet regulatory requirements. Once complete, your account will be fully enabled for outbound payments and regular use.
Not a Fee: The penny test isn’t a fee or a charge — it’s simply a verification step. The funds are still yours.
Use or Return the Funds: Once the penny test is complete, the funds remain available in your account. You can either use them as part of a future transaction or withdraw them back to your own bank account.
Who Needs to Complete a Penny Test with Rutland FX?
At Rutland FX, only clients based in the European Economic Area (EEA) are required to complete a penny test. This is due to additional regulatory obligations we must meet when onboarding clients through our payment partner, Currencycloud B.V., in the Netherlands.
To be clear:
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The payment must come from a bank account held in your name.
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It must be sent from a bank located in the EEA.
We cannot accept funds from third parties or unrelated accounts for this verification.
Why Do We Require a Penny Test?
Rutland FX is a cross-border payments specialist operating in partnership with Currencycloud. For customers based in the European Economic Area (EEA), services are provided by Currencycloud B.V., which is authorised and regulated by De Nederlandsche Bank (DNB) for the issuing of electronic money (Relation number: DNB R142701).
As part of the regulatory obligations under this licence, Currencycloud B.V. must verify that each client holds a legitimate, named bank account within the EEA. This requirement helps to:
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Prevent fraud and money laundering
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Ensure any returned funds are sent securely to a verified source
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Comply with EU regulations governing electronic money institutions
Without this verification, Currencycloud cannot process outbound payments or fully activate your account. This safeguard is a standard compliance measure for most EMIs.
How Long Does the Penny Test Take?
Once we receive your penny test payment, verification is typically completed within 1–2 hours during business hours. If it hasn’t been verified within that time, please contact your Rutland FX Account Manager for assistance.
Please note that this timeframe begins only after the funds arrive in your account. The time it takes for your penny test to reach us depends on the payment method you choose:
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SWIFT payments are usually received the same day, especially for major currencies, and can be a quicker option overall — though fees may apply depending on your bank.
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SEPA transfers (EUR) can also arrive the same day, but in some cases may take a bit longer to process, depending on your bank’s cut-off times and processing cycles.
If you’re sending €0.01 specifically for the penny test, it may be more cost-effective to use SEPA, as many banks do not charge a fee for small SEPA transfers, whereas SWIFT transfers can incur charges even for tiny amounts.
Still not sure?
Our team is here to help. If you have any questions or need assistance with choosing the right payment option for your transfer, feel free to reach out to us at [email protected] or call us on 0203 026 0112.