Why Is Account Verification Important?

With identity theft continually on the rise, bank account verification is becoming a critical asset for businesses.

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.

At ValidiFI, we pride ourselves on providing our clients with financial data and technology services that transform risk into confidence. 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

While there are many options available for account verification, none offer a service suite quite like ValidiFI. ValidiFI’s Account Validation determines the level of risk 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.

The benefits of our services 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 with ValidiFI financial technology services allows institutions to separate accounts into risk tiers rapidly and easily.

  • Ensure NACHA Compliance

    Proudly, ValidiFI is one of the National Automated Clearing House Association’s (Nacha) Preferred Partners for account verification. ValidiFI’s solutions empower businesses accepting Automated Clearing House (ACH) payments, to easily comply with Nacha’s WEB Debit Rules. Compliance with these rules and guidelines allows the transfer system to run more efficiently to benefit consumers.

  • Zero Friction to Consumers

    Also known as non-credentialed, non-consented, or non-permissioned data, our services use an Application Programming Interface-only (API) to make it easier to integrate and implement critical data. In addition, our proprietary technology allows businesses to quickly assess the ownership of the account, remove the manual process, approve customers 24/7, and reduce fraud. 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: This technology utilizes bank account information to identify positive and negative banking data into actionable insights.
  • Contributory Transaction Data: This technology provides a database to easily analyze data from businesses, merchants, and payment processors.
  • Live Account Status Validation: This technology informs 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 are par to none and provide proprietary technologies to best benefit businesses and consumers. If you have any questions about our products or would like to get started, call us at 754-209-2511 or get in touch with us online today!