diff --git a/core/model/src/driver.rs b/core/model/src/driver.rs
index 4b35918834..1ff3601efa 100644
--- a/core/model/src/driver.rs
+++ b/core/model/src/driver.rs
@@ -3,6 +3,7 @@ use bitflags::bitflags;
 use chrono::{DateTime, Utc};
 use serde::{Deserialize, Serialize};
 use std::fmt::Display;
+use ya_client_model::payment::Allocation;
 use ya_service_bus::RpcMessage;
 
 pub fn driver_bus_id<T: Display>(driver_name: T) -> String {
@@ -210,3 +211,28 @@ impl RpcMessage for GetTransactionBalance {
     type Item = BigDecimal;
     type Error = GenericError;
 }
+
+// ************************** VALIDATE ALLOCATION **************************
+
+#[derive(Clone, Debug, Serialize, Deserialize)]
+pub struct ValidateAllocation {
+    pub address: String,
+    pub amount: BigDecimal,
+    pub existing_allocations: Vec<Allocation>,
+}
+
+impl ValidateAllocation {
+    pub fn new(address: String, amount: BigDecimal, existing: Vec<Allocation>) -> Self {
+        ValidateAllocation {
+            address,
+            amount,
+            existing_allocations: existing,
+        }
+    }
+}
+
+impl RpcMessage for ValidateAllocation {
+    const ID: &'static str = "ValidateAllocation";
+    type Item = bool;
+    type Error = GenericError;
+}
diff --git a/core/model/src/payment.rs b/core/model/src/payment.rs
index eefaae7e19..98bc04ae93 100644
--- a/core/model/src/payment.rs
+++ b/core/model/src/payment.rs
@@ -4,14 +4,16 @@ use ya_service_bus::RpcMessage;
 
 #[derive(Clone, Debug, Serialize, Deserialize, thiserror::Error)]
 pub enum RpcMessageError {
-    #[error("Send error: {0}")]
+    #[error("{0}")]
     Send(#[from] public::SendError),
-    #[error("Accept/reject error: {0}")]
+    #[error("{0}")]
     AcceptReject(#[from] public::AcceptRejectError),
-    #[error("Cancel error: {0}")]
+    #[error("{0}")]
     Cancel(#[from] public::CancelError),
     #[error("{0}")]
     Generic(#[from] local::GenericError),
+    #[error("{0}")]
+    ValidateAllocation(#[from] local::ValidateAllocationError),
 }
 
 pub mod local {
@@ -323,6 +325,27 @@ pub mod local {
         pub requestor: InvoiceStatusNotes,
         pub provider: InvoiceStatusNotes,
     }
+
+    #[derive(Clone, Debug, Serialize, Deserialize)]
+    pub struct ValidateAllocation {
+        pub platform: String,
+        pub address: String,
+        pub amount: BigDecimal,
+    }
+
+    impl RpcMessage for ValidateAllocation {
+        const ID: &'static str = "ValidateAllocation";
+        type Item = bool;
+        type Error = ValidateAllocationError;
+    }
+
+    #[derive(Clone, Debug, Serialize, Deserialize, thiserror::Error)]
+    pub enum ValidateAllocationError {
+        #[error("Account not registered")]
+        AccountNotRegistered,
+        #[error("Error while validating allocation: {0}")]
+        Other(String),
+    }
 }
 
 pub mod public {
diff --git a/core/payment-driver/base/src/bus.rs b/core/payment-driver/base/src/bus.rs
index 1b35c91dba..8e4f571f01 100644
--- a/core/payment-driver/base/src/bus.rs
+++ b/core/payment-driver/base/src/bus.rs
@@ -52,6 +52,9 @@ pub async fn bind_service<Driver: PaymentDriver + 'static>(db: &DbExecutor, driv
         )
         .bind_with_processor(
             move |db, dr, c, m| async move { dr.verify_payment(db, c, m).await }
+        )
+        .bind_with_processor(
+            move |db, dr, c, m| async move { dr.validate_allocation(db, c, m).await }
         );
 
     log::debug!("Successfully bound payment driver service to service bus");
diff --git a/core/payment-driver/base/src/driver.rs b/core/payment-driver/base/src/driver.rs
index 6379755d0c..c308bd812f 100644
--- a/core/payment-driver/base/src/driver.rs
+++ b/core/payment-driver/base/src/driver.rs
@@ -8,10 +8,7 @@
 
 // Local uses
 use crate::dao::DbExecutor;
-use crate::model::{
-    Ack, GenericError, GetAccountBalance, GetTransactionBalance, Init, PaymentDetails,
-    SchedulePayment, VerifyPayment,
-};
+use crate::model::*;
 
 // Public revealed uses, required to implement this trait
 pub use async_trait::async_trait;
@@ -61,4 +58,11 @@ pub trait PaymentDriver {
         caller: String,
         msg: VerifyPayment,
     ) -> Result<PaymentDetails, GenericError>;
+
+    async fn validate_allocation(
+        &self,
+        db: DbExecutor,
+        caller: String,
+        msg: ValidateAllocation,
+    ) -> Result<bool, GenericError>;
 }
diff --git a/core/payment-driver/dummy/src/service.rs b/core/payment-driver/dummy/src/service.rs
index 5a488bc6a8..be6c4c554b 100644
--- a/core/payment-driver/dummy/src/service.rs
+++ b/core/payment-driver/dummy/src/service.rs
@@ -16,7 +16,8 @@ pub fn bind_service() {
         .bind(get_account_balance)
         .bind(get_transaction_balance)
         .bind(schedule_payment)
-        .bind(verify_payment);
+        .bind(verify_payment)
+        .bind(validate_allocation);
 
     log::debug!("Successfully bound payment driver service to service bus");
 }
@@ -111,3 +112,11 @@ async fn verify_payment(
     let details = serde_json::from_str(&json_str).unwrap();
     Ok(details)
 }
+
+async fn validate_allocation(
+    _db: (),
+    _caller: String,
+    _msg: ValidateAllocation,
+) -> Result<bool, GenericError> {
+    Ok(true)
+}
diff --git a/core/payment-driver/gnt/src/service.rs b/core/payment-driver/gnt/src/service.rs
index c41d641a0b..77f7ff5923 100644
--- a/core/payment-driver/gnt/src/service.rs
+++ b/core/payment-driver/gnt/src/service.rs
@@ -14,7 +14,8 @@ pub fn bind_service(db: &DbExecutor, processor: GNTDriverProcessor) {
         .bind_with_processor(get_account_balance)
         .bind_with_processor(get_transaction_balance)
         .bind_with_processor(schedule_payment)
-        .bind_with_processor(verify_payment);
+        .bind_with_processor(verify_payment)
+        .bind_with_processor(validate_allocation);
 
     log::debug!("Successfully bound payment driver service to service bus");
 }
@@ -118,6 +119,16 @@ async fn verify_payment(
     )
 }
 
+async fn validate_allocation(
+    _db: DbExecutor,
+    _processor: GNTDriverProcessor,
+    _caller: String,
+    _msg: ValidateAllocation,
+) -> Result<bool, GenericError> {
+    log::debug!("Validate allocation: {:?}", _msg);
+    Ok(true) // TODO: Implement proper check
+}
+
 async fn account_event(
     _db: DbExecutor,
     processor: GNTDriverProcessor,
diff --git a/core/payment-driver/zksync/src/driver.rs b/core/payment-driver/zksync/src/driver.rs
index 67a735f200..6528381e52 100644
--- a/core/payment-driver/zksync/src/driver.rs
+++ b/core/payment-driver/zksync/src/driver.rs
@@ -16,10 +16,7 @@ use ya_payment_driver::{
     dao::DbExecutor,
     db::models::PaymentEntity,
     driver::{async_trait, BigDecimal, IdentityError, IdentityEvent, PaymentDriver},
-    model::{
-        Ack, GenericError, GetAccountBalance, GetTransactionBalance, Init, PaymentConfirmation,
-        PaymentDetails, SchedulePayment, VerifyPayment,
-    },
+    model::*,
     utils,
 };
 
@@ -200,6 +197,21 @@ impl PaymentDriver for ZksyncDriver {
         // }
         from_confirmation(msg.confirmation())
     }
+
+    async fn validate_allocation(
+        &self,
+        _db: DbExecutor,
+        _caller: String,
+        msg: ValidateAllocation,
+    ) -> Result<bool, GenericError> {
+        let account_balance = wallet::account_balance(&msg.address).await?;
+        let total_allocated_amount: BigDecimal = msg
+            .existing_allocations
+            .into_iter()
+            .map(|allocation| allocation.remaining_amount)
+            .sum();
+        Ok(msg.amount <= (account_balance - total_allocated_amount))
+    }
 }
 
 #[async_trait(?Send)]
diff --git a/core/payment/src/api/requestor.rs b/core/payment/src/api/requestor.rs
index fcf50de06e..634a61a6e0 100644
--- a/core/payment/src/api/requestor.rs
+++ b/core/payment/src/api/requestor.rs
@@ -2,13 +2,17 @@ use crate::api::*;
 use crate::dao::*;
 use crate::error::{DbError, Error};
 use crate::utils::{listen_for_events, response, with_timeout};
+use crate::DEFAULT_PAYMENT_PLATFORM;
 use actix_web::web::{delete, get, post, put, Data, Json, Path, Query};
 use actix_web::{HttpResponse, Scope};
 use metrics::counter;
 use serde_json::value::Value::Null;
 use ya_agreement_utils::{ClauseOperator, ConstraintKey, Constraints};
 use ya_client_model::payment::*;
-use ya_core_model::payment::local::{GetAccounts, SchedulePayment, BUS_ID as LOCAL_SERVICE};
+use ya_core_model::payment::local::{
+    GetAccounts, SchedulePayment, ValidateAllocation, ValidateAllocationError,
+    BUS_ID as LOCAL_SERVICE,
+};
 use ya_core_model::payment::public::{
     AcceptDebitNote, AcceptInvoice, AcceptRejectError, BUS_ID as PUBLIC_SERVICE,
 };
@@ -365,12 +369,33 @@ async fn create_allocation(
     id: Identity,
 ) -> HttpResponse {
     // TODO: Handle deposits & timeouts
-    // TODO: Check available funds
     let allocation = body.into_inner();
     let node_id = id.identity;
+    let payment_platform = allocation
+        .payment_platform
+        .clone()
+        .unwrap_or(DEFAULT_PAYMENT_PLATFORM.to_string());
+    let address = allocation.address.clone().unwrap_or(node_id.to_string());
+
+    let validate_msg = ValidateAllocation {
+        platform: payment_platform.clone(),
+        address: address.clone(),
+        amount: allocation.total_amount.clone(),
+    };
+    match async move { Ok(bus::service(LOCAL_SERVICE).send(validate_msg).await??) }.await {
+        Ok(true) => {}
+        Ok(false) => return response::bad_request(&"Insufficient funds to make allocation"),
+        Err(Error::Rpc(RpcMessageError::ValidateAllocation(
+            ValidateAllocationError::AccountNotRegistered,
+        ))) => return response::bad_request(&"Account not registered"),
+        Err(e) => return response::server_error(&e),
+    }
+
     let dao: AllocationDao = db.as_dao();
     match async move {
-        let allocation_id = dao.create(allocation, node_id).await?;
+        let allocation_id = dao
+            .create(allocation, node_id, payment_platform, address)
+            .await?;
         Ok(dao.get(allocation_id, node_id).await?)
     }
     .await
diff --git a/core/payment/src/dao/allocation.rs b/core/payment/src/dao/allocation.rs
index df037dcc23..113e53c4a3 100644
--- a/core/payment/src/dao/allocation.rs
+++ b/core/payment/src/dao/allocation.rs
@@ -44,8 +44,14 @@ pub fn spend_from_allocation(
 }
 
 impl<'c> AllocationDao<'c> {
-    pub async fn create(&self, allocation: NewAllocation, owner_id: NodeId) -> DbResult<String> {
-        let allocation = WriteObj::new(allocation, owner_id);
+    pub async fn create(
+        &self,
+        allocation: NewAllocation,
+        owner_id: NodeId,
+        payment_platform: String,
+        address: String,
+    ) -> DbResult<String> {
+        let allocation = WriteObj::new(allocation, owner_id, payment_platform, address);
         let allocation_id = allocation.id.clone();
         do_with_transaction(self.pool, move |conn| {
             diesel::insert_into(dsl::pay_allocation)
@@ -100,6 +106,22 @@ impl<'c> AllocationDao<'c> {
         .await
     }
 
+    pub async fn get_for_address(
+        &self,
+        payment_platform: String,
+        address: String,
+    ) -> DbResult<Vec<Allocation>> {
+        readonly_transaction(self.pool, move |conn| {
+            let allocations: Vec<ReadObj> = dsl::pay_allocation
+                .filter(dsl::payment_platform.eq(payment_platform))
+                .filter(dsl::address.eq(address))
+                .filter(dsl::released.eq(false))
+                .load(conn)?;
+            Ok(allocations.into_iter().map(Into::into).collect())
+        })
+        .await
+    }
+
     pub async fn release(&self, allocation_id: String, owner_id: NodeId) -> DbResult<bool> {
         do_with_transaction(self.pool, move |conn| {
             let num_released = diesel::update(
diff --git a/core/payment/src/error.rs b/core/payment/src/error.rs
index aa590a088c..4aed6bf414 100644
--- a/core/payment/src/error.rs
+++ b/core/payment/src/error.rs
@@ -1,4 +1,4 @@
-use ya_core_model::payment::local::GenericError;
+use ya_core_model::payment::local::{GenericError, ValidateAllocationError};
 use ya_core_model::payment::public::{AcceptRejectError, CancelError, SendError};
 use ya_core_model::payment::RpcMessageError;
 
@@ -100,6 +100,12 @@ impl From<GenericError> for Error {
     }
 }
 
+impl From<ValidateAllocationError> for Error {
+    fn from(e: ValidateAllocationError) -> Self {
+        Into::<RpcMessageError>::into(e).into()
+    }
+}
+
 pub mod processor {
     use super::DbError;
     use crate::models::activity::ReadObj as Activity;
@@ -108,7 +114,9 @@ pub mod processor {
     use bigdecimal::BigDecimal;
     use std::fmt::Display;
     use ya_core_model::driver::AccountMode;
-    use ya_core_model::payment::local::GenericError;
+    use ya_core_model::payment::local::{
+        GenericError, ValidateAllocationError as GsbValidateAllocationError,
+    };
     use ya_core_model::payment::public::SendError;
 
     #[derive(thiserror::Error, Debug)]
@@ -334,4 +342,27 @@ pub mod processor {
         #[error("Error while sending payment: {0}")]
         Driver(#[from] ya_core_model::driver::GenericError),
     }
+
+    #[derive(thiserror::Error, Debug)]
+    pub enum ValidateAllocationError {
+        #[error("{0}")]
+        AccountNotRegistered(#[from] AccountNotRegistered),
+        #[error("Service bus error: {0}")]
+        ServiceBus(#[from] ya_service_bus::error::Error),
+        #[error("Error while sending payment: {0}")]
+        Driver(#[from] ya_core_model::driver::GenericError),
+        #[error("Database error: {0}")]
+        Database(#[from] DbError),
+    }
+
+    impl From<ValidateAllocationError> for GsbValidateAllocationError {
+        fn from(e: ValidateAllocationError) -> Self {
+            match e {
+                ValidateAllocationError::AccountNotRegistered(e) => {
+                    GsbValidateAllocationError::AccountNotRegistered
+                }
+                e => GsbValidateAllocationError::Other(e.to_string()),
+            }
+        }
+    }
 }
diff --git a/core/payment/src/models/allocation.rs b/core/payment/src/models/allocation.rs
index e0a21c737b..da996d9b2c 100644
--- a/core/payment/src/models/allocation.rs
+++ b/core/payment/src/models/allocation.rs
@@ -1,5 +1,4 @@
 use crate::schema::pay_allocation;
-use crate::DEFAULT_PAYMENT_PLATFORM;
 use chrono::{NaiveDateTime, TimeZone, Utc};
 use uuid::Uuid;
 use ya_client_model::payment::{Allocation, NewAllocation};
@@ -22,14 +21,17 @@ pub struct WriteObj {
 }
 
 impl WriteObj {
-    pub fn new(allocation: NewAllocation, owner_id: NodeId) -> Self {
+    pub fn new(
+        allocation: NewAllocation,
+        owner_id: NodeId,
+        payment_platform: String,
+        address: String,
+    ) -> Self {
         Self {
             id: Uuid::new_v4().to_string(),
             owner_id,
-            payment_platform: allocation
-                .payment_platform
-                .unwrap_or(DEFAULT_PAYMENT_PLATFORM.to_string()),
-            address: allocation.address.unwrap_or(owner_id.to_string()),
+            payment_platform,
+            address,
             total_amount: allocation.total_amount.clone().into(),
             spent_amount: Default::default(),
             remaining_amount: allocation.total_amount.into(),
diff --git a/core/payment/src/processor.rs b/core/payment/src/processor.rs
index 08caab00a0..8c402acea5 100644
--- a/core/payment/src/processor.rs
+++ b/core/payment/src/processor.rs
@@ -1,7 +1,7 @@
-use crate::dao::{ActivityDao, AgreementDao, OrderDao, PaymentDao};
+use crate::dao::{ActivityDao, AgreementDao, AllocationDao, OrderDao, PaymentDao};
 use crate::error::processor::{
     AccountNotRegistered, DriverNotRegistered, GetStatusError, NotifyPaymentError,
-    OrderValidationError, SchedulePaymentError, VerifyPaymentError,
+    OrderValidationError, SchedulePaymentError, ValidateAllocationError, VerifyPaymentError,
 };
 use crate::models::order::ReadObj as DbOrder;
 use bigdecimal::{BigDecimal, Zero};
@@ -12,7 +12,7 @@ use std::collections::HashMap;
 use std::sync::Arc;
 use ya_client_model::payment::{ActivityPayment, AgreementPayment, Payment};
 use ya_core_model::driver::{
-    self, driver_bus_id, AccountMode, PaymentConfirmation, PaymentDetails,
+    self, driver_bus_id, AccountMode, PaymentConfirmation, PaymentDetails, ValidateAllocation,
 };
 use ya_core_model::payment::local::{
     Account, NotifyPayment, RegisterAccount, RegisterAccountError, SchedulePayment,
@@ -387,4 +387,29 @@ impl PaymentProcessor {
             .await??;
         Ok(amount)
     }
+
+    pub async fn validate_allocation(
+        &self,
+        platform: String,
+        address: String,
+        amount: BigDecimal,
+    ) -> Result<bool, ValidateAllocationError> {
+        let existing_allocations = self
+            .db_executor
+            .as_dao::<AllocationDao>()
+            .get_for_address(platform.clone(), address.clone())
+            .await?;
+        let driver =
+            self.registry
+                .lock()
+                .await
+                .driver(&platform, &address, AccountMode::empty())?;
+        let msg = ValidateAllocation {
+            address,
+            amount,
+            existing_allocations,
+        };
+        let result = driver_endpoint(&driver).send(msg).await??;
+        Ok(result)
+    }
 }
diff --git a/core/payment/src/service.rs b/core/payment/src/service.rs
index bef6cfd3a5..e54d2bb9bf 100644
--- a/core/payment/src/service.rs
+++ b/core/payment/src/service.rs
@@ -31,7 +31,8 @@ mod local {
             .bind_with_processor(notify_payment)
             .bind_with_processor(get_status)
             .bind_with_processor(get_invoice_stats)
-            .bind_with_processor(get_accounts);
+            .bind_with_processor(get_accounts)
+            .bind_with_processor(validate_allocation);
 
         // Initialize counters to 0 value. Otherwise they won't appear on metrics endpoint
         // until first change to value will be made.
@@ -199,6 +200,17 @@ mod local {
         }
         Ok(output_stats)
     }
+
+    async fn validate_allocation(
+        db: DbExecutor,
+        processor: PaymentProcessor,
+        sender: String,
+        msg: ValidateAllocation,
+    ) -> Result<bool, ValidateAllocationError> {
+        Ok(processor
+            .validate_allocation(msg.platform, msg.address, msg.amount)
+            .await?)
+    }
 }
 
 mod public {