Four Crucial Benefits of Verifying Bank Account Ownership

Verifying Bank Account Ownership is more important now than ever. In today’s digital environment businesses cannot afford not to verify consumer or vendor’s bank account ownership. 

Enhancing Fraud Protection Through Bank Account Ownership Validation

Verifying bank account ownership with open banking capabilities has proven to be one of the most authoritative methods in reducing fraud. In the past, many businesses relied on simple, manual fraud verification strategies. But this has gone poorly for both businesses and consumers or vendors as fraud continues to intensify.

At its simplest, account ownership validates that a customer or business is who they say they are and confirms they are using an account that does belong to them. Adding this extra layer of fraud prevention may sound costly but the truth is, it will cost you more once fraud has already occurred. 

Here are four reasons why you should consider bank account ownership validation:

Detect Fraud

As a business, your safest strategy for reducing payment fraud and identifying risky customers instantly is to validate whether the submitted information matches the bank account owner’s data. Ownership validation can help detect fraud related to unauthorized users, including synthetic identities, stolen bank accounts, and both first-party and third-party vendor fraud.

Reduce Unauthorized Return Fees

Businesses lose millions every year because of incorrectly submitted payments whether due to intentional or accidental human error. The added layer of bank account ownership provides security ensuring both deposits and transfers are made to the correct bank accounts. This also reduces the fees related to unauthorized payments, returned ACH, and check payments.

Businesses lose millions every year due to incorrect payment submissions. These errors can be intentional, such as attempted fraud, or accidental, like a mistyped account number. Adding a layer of bank account ownership validation provides security, ensuring that deposits and transfers are made to the correct bank accounts. This reduces fees associated with unauthorized payments, returned ACH, and check payments.

Reduces Operational Costs

Don’t let the delays of manual processes cost you customers. Automated account solutions eliminate the expenses and inefficiencies associated with manually validating bank accounts or using prenotes. By leveraging account ownership solutions, you can significantly reduce operational costs and save time, all while ensuring transactions are handled safely and efficiently. This allows your team to focus on more strategic tasks, ultimately improving customer satisfaction and business performance.

Creates a Better User Experience

Streamline the application process with auto-populated data and expedite customer onboarding by eliminating manual verification and document requests. If account ownership technology identifies mistakes during onboarding, it prevents additional administrative costs and customer friction. Automated solutions also speed up disbursements and payments, making the process quicker and more beneficial for your customers.

Account Validation: A Valuable Asset in Your ToolKit

Account validation is a powerful cost-effective tool that helps mitigate fraud in real time and can help when verifying bank account ownership.

ValidiFI offers flexible bank account validation solutions to quickly identify unauthorized users, reduce unauthorized ACH returns, and verify account status. With our vAuth solution, we can validate a user has access to a bank account in real-time, getting close to account ownership. 

If you would like to learn how ValidiFI’s predictive bank account and payment intelligence can help provide you with a more complete picture of a customer’s banking and payment information, contact us today!