Why Is Account Verification Important?

With identity theft continually on the rise, bank account verification is becoming a critical asset for organizations and financial institutions alike.

Bank account verification authenticates and validates bank accounts, providing a snapshot of an account to better determine its status and structure while also detecting possible fraudulent activity. Below, we explain the critical importance of employing bank account validation.

Bank Account Verification Basics

Bank data speaks volumes about individuals and companies expanding beyond the validity of an account. Rather, bank account verification solutions are able to delve into banking and payment data to determine the validity of a consumer. Without account verification, businesses would have a challenging time determining instantly whether the consumer is a real person and has authorized access to the bank account they have submitted. 

Key Benefits of Bank Account Verification

There are many options available for account verification, and not all services are the same. Most verify identity information or account information seperately. ValidiFI’s Account Validation solutions apply a more robust approach by looking at a consumer’s bank AND payment data, including account information, financial history, financial behaviors, and payments. We offer a variety of tiers depending on your business goals, industry, and levels of risk and fraud.

Benefits include:

• Create New Risk Segments – Businesses utilizing digital transactions need to quickly and efficiently identify a consumer’s identity to ensure the validity of their account. Creating new segments allows institutions to separate accounts into risk tiers rapidly and easily.

• Ensure NACHA Compliance – By selecting a National Automated Clearing House Association’s (Nacha) Preferred Partner for account verification, you can ensure the service you are using will help meet WEB debit rule requirements. Compliance with these rules and guidelines allows the transfer system to run more efficiently to benefit consumers.

• Zero Friction to Consumers – Leveraging non-credentialed, non-consented, or non-permissioned services make it easier to integrate and implement critical data. ValidiFI’s vAccount and vAccount Plus solutions are both non-credentialed solutions. Improving account verification allows businesses and financial institutions to attract and keep legitimate clients.

• Reduce Overdrafts and Return Fees – No business wants to have to deal with overdrafts or return fees on falsely validated accounts. With ValidiFI, our Account Validation services reduce these possibilities by providing a suite of services that notifies the lender of negative behaviors of clients. As a result, financial institutions will quickly identify and manage any overdraft or return fee issues that may arise.

Data Attributes for Account Verification

ValidiFI provides businesses with real-time benefits to improve their profits while reducing their risk. We do this through proprietary tools and technologies, including:

• Banking Data – Utilizing bank account information to identify positive and negative banking data into actionable insights.
• Contributory Transaction Data – Access a database to easily analyze data from businesses, merchants, and payment processors.
• Live Account Status Validation – Inform if accounts are open, closed, or invalid.
• Routing Number and Account Number Structure – This attribute verifies that the consumer supplied routing number belongs to a bank and is capable of receiving electronic payments.

Account Verification with ValidiFI

Every business from every industry is looking to reduce their risk and increase their profit. At ValidiFI, we find innovative solutions customized to your needs and strategies. Our products and services expertly empower you to verify accounts to help you prevent fraud and decrease your losses.

ValidiFI’s easy-to-integrate verification services offer access to predictive bank account and payment intelligence to help businesses and consumers. Contact us to learn more or get started with a data study.