This blog will talk about selecting the best bank account verification service. Although sometimes it may seem that all account verification solutions and companies are the same, they are not for various reasons.
Below, we’ll outline what types of things your business should look for when selecting a bank account verification service.
What is Bank Account Verification?
Bank account verification verifies the validity of a bank account. More specifically, bank account verification confirms that a routing number is good and that an account is in good standing. And more importantly, this is required by Nacha and must be done right. Also, doing so can help reduce returned payments and expensive fees.
- Required by Nacha
- Verifies routing number
- Ensures account is in good standing
Benefits of Account Verification
Other than being required by Nacha, account verification helps protect merchants from bad actors. Companies can ensure that bank accounts are legit and in good standing by using bank account verification software, resulting in fewer returned payments, fewer return fees, and more on-time payments. Bottom line, AVS helps create a climate of safer payments for both merchants and consumers.
- Reduces returned payments
- Cuts down on fees
- Verifies bank accounts
1 Nacha Compliant Bank Account Verification
In 2021, Nacha updated its account verification requirements for ACH payments. Nacha implemented requirements to verify a routing number and verify that an account is in good standing to reduce the return of payments and fees. Because of Nacha and the new Nacha update of 2021, companies and organizations must use bank account verification services that are Nacha compliant.
- Must verify the routing number
- Must demonstrate the account is in good standing
2 Track Records of Account Verification Companies
Sometimes, one of the easiest ways to check and see how good an account verification service or another company might be is to look at their track record.
Checking out a company’s time in business, partnerships, and client lists can often be telling. Years of experience and the names of a few clients can often paint an accurate picture of a company’s reputation.
3 Security and Uptime
In a recent study, PaymentVision found that security and speed are the two major concerns of merchants regarding payment technology. In today’s world, riddled with fraud, phishing attempts, and hackers, security seems to be an ongoing theme among merchants, customers, and those working to protect critical data such as banking details.
Lyons Security Features
- PCI DSS validated Level 1 service provider
- On Visa’s Global Compliant Provider List and MasterCard’s SDP List
- Lyons third-party datacenters completed their annual Type 2 SOC 2 assessment
- Utilizes hosted tokenization to protect customer data
- Has 99.99% service uptime and availability
4 Support Team
Just like with any technology service, tech issues can arise. This can mean downtime for upgrades, security issues, and flat-out downtimes because technology wouldn’t be without miscellaneous downtimes. Things happen, and knowing that there is an efficient, knowledgeable, and experienced support team behind the scenes can mean a lot to clients and customers.
Recap: What You Should Look for in a Bank Account Verification Service
Nacha requires bank account verification to help reduce returns and fees for merchants. To properly verify a bank account, merchants must ensure a legitimate routing number and verify that an account is in good standing.
When merchants are seeking a bank account verification solution, there are several factors they should consider as not all account verification services and tools are the same. Topping the list is ensuring that the solution is Nacha compliant.
It’s also worth looking at a company’s track record, considering the time in business, partnerships, and past and current clients. Other important aspects of finding the right account verification solution include security and uptime considerations and knowing how accessible the company’s support team is.
If you would like to discuss account verification solutions for your company, we’d love to chat. Contact us to receive more information about our account verification services and how they can work for your company.