How do you verify a customer's bank account? And why would you need to? Let us delve into the topic and tell you more.
Ucha Vekua, October 28th, 2021
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Bank Account Verification is a process which ensures that funds are coming from and going to legitimate bank accounts. Generally, this process confirms the validity of a bank account, and it also has several benefits for companies.
In this article, we’ll look into bank account verification and discuss the potential benefits of using it for your company.
Bank account verification refers to the process that helps businesses verify the ownership of bank accounts. Usually, companies are required to go through these processes due to regulatory requirements. But, more importantly, verification helps to reduce the risk of fraud or costly errors.
Verifying the validity of a customer’s bank account helps businesses operate more effectively. It saves a lot of time and ensures everyone’s safety. More specifically, a proper verification system protects companies from individuals who want to commit massive fraud, which might damage the business in the long run.
In order to charge or send money to customers, businesses need to have their bank account information in their database. Mostly, companies request this information while customers are registering to use a particular product or service. However, people sometimes make mistakes, or in other cases may be attempting to commit fraud.
This is where bank account verification is an essential component for registration - this way, companies ensure that everything is secure and there are fewer chances of fraud. This procedure helps businesses validate the provided bank account information and confirm that it belongs to the real person. Finally, both parties win - enterprises know that the money will come from the right place.
One of the typical methods for this verification is using micro-deposits, sending a small amount of money to your customer’s account, and then asking them to relay this back to you via a form on your website or another secure communication method. This ensures that your customer has control over their account and immediate access to the activity within it.
It is crucially important for businesses to verify a customer's identity, address, and bank account ownership. This both builds trust and protects the company.
Typically, verification service providers set the pricing plans for their clients individually, depending on their needs and volumes.
Some payment providers will include this as an additional element of their services, or potentially an add-on for an extra fee. So if you feel you’ll need to verify the bank accounts of your customers in the future, then be sure to search for the best option both in terms of price and user experience.
If you would like to learn more broadly about Identity Verification and other KYC solutions that build trust and transparency at scale, then you’re in the right place!
Besides making it easy for honest people to get verified online and become your customers, Veriff also tries to educate everyone interested in this field and share insightful information. We do it across different channels to make sure that we answer every question that our audience might have.
You can see a lot of helpful material about various topics related to Identity Verification on our blog page. We cover topics such as Biometric Authentication, Reverification, Employment Verification, Anti-Money Laundering, and KYC, to name a few.
To learn more about verification, take a look at our article about Identity Verification that addresses one of the biggest questions about IDV - what it is, and why the world needs it.
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Other than informative articles, we produce video content on Youtube for our followers as well. Our channel is full of interesting and insightful videos about various topics. We talk about the usage of our tools, explain the verification flow, and show how we are different from the competition.
Here you will see webinars, tutorials, and talks about the identity verification trends. Don’t forget to subscribe, so you won’t miss anything that we put out.
Additionally, you can learn more about bank account verification by going through the rest of Veriff’s website. There you can see detailed information about the products we offer. These are Identity Verification Platform, AML & KYC Compliance, ID Verification Software, Face Match, Assisted Image Capture, and Verification Tooling. We also have complete information about the usage of our products in different industries such as Fintech, Mobility, and Crypto.
Other than products, you can see the plans & pricing details on our website, which can help you understand which one of our plans would suit your business the most. Also, there is a developer's guide and documentation to help you easily integrate our solution into your platform.
Here at Veriff, we make it easy for companies to connect with honest people. Take a look at our Identity Verification & KYC plans for businesses. All of these plans include overall benefits such as a free trial (which covers your first 100 verifications or 30 days), 39 supported languages, and sandbox integration. We believe that we truly make the digital world safer with the tools we are building daily.
If you would like to learn more about our services, feel free to book a consultation, and we will reach out to you soon!
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When carrying out due diligence, a financial institution must determine whether they should perform customer due diligence (CDD) or enhanced due diligence (EDD). This is because FATF guidance suggests that companies should adopt a risk-based approach to due diligence that reflects the specific level of risk that each individual customer presents.
Synthetic fraud is incredibly dangerous and is a major problem facing the financial sector. Unlike third-party fraud, where an entire identity is stolen and used to defraud enterprises and victims, synthetic fraud frequently has no specific consumer victim.