Verifying a bank account is one of the most crucial parts of minimizing the risks of frauds and scams for a bank, financial organization, or FinTechs. With the technology growing at an incredible pace, ACH transactions are at an all-time high. Bank account verification is crucial during online funds transfers or commonly known as ACH transactions as it ensures where the funds are coming from and if they are associated with any malicious activities.
As more businesses are offering online payments in alternative to payment methods such as credit cards and paper checks. Finding an ideal method of bank verification can be suitable for users as it improves user experience.
Using the right methods of bank verification will allow you to mitigate the risks of fraud and scams.
Banks, financial organizations, and other FinTechs need to employ the methods for bank account verification if they intend to keep their brand reputation intact. Here are the best bank account verification methods to keep an eye out for.
Micro-deposits are deposits of less than ten cents transferred from one financial institution to another that can help in verifying if a specific account type is valid or not. If a bank does not offer the feature of online banking or if the users can’t remember their credentials even then they can make micro-deposits for account verification as it is a self-contained process.
When using micro deposit verifications, the user will fill in their bank account and routing information. Two small credits are sent to the customer’s account that will be reflected in 1-5 business days. These amounts will confirm that the user can access their own account.
The fastest method of bank account verification is by using the instant account verification service from the bank itself. Using instant account verification can even improve your overall user experience. With IAV, a user is asked to choose their bank and submit their online banking credentials to verify the account. In just mere seconds, the bank account is verified and the users can start with their banking features.
A check verification service or a third-party bank verification service provides businesses, individuals, or other financial institutions with the ability to check the validity of the account.
Third-party bank account verification can be done using multiple methods such as checking different databases with negative account history, checking to route and account number is valid or not, orax contacting the bank directly to confirm the information.
DIRO’s technology captures original documents from any web source online. Using DIRO’s technology, users can verify bank account documents (any kind of documents) that can assist banks & FinTechs in verifying bank accounts and reduce the risk of frauds and scams.
All types of bank account verification can be done in seconds using DIRO’s award-winning document verification technology. Even the best bank account verification methods can often fail to verify cleverly fabricated bank documents. DIRO verifies the documents against the original web source to reduce the risk of financial crime.