Category Archives: Account Validation

In today’s digital age, online fraud and identity theft have become increasingly common. This has made it more important than ever for companies to verify the bank accounts of their customers to prevent fraudulent activities. This is where bank account verification services come in.

Bank account verification services play a critical role in combating online fraud and identity theft by verifying the authenticity of a person’s identity and bank account information. 

Lyons Commercial Data offers a comprehensive bank account verification service that helps businesses verify the routing and bank account numbers of their customers quickly and efficiently. Lyons’ solution is easy to use, secure, and customizable, making it an ideal choice for businesses of all sizes and types.

One of the key features of Lyons’ bank account verification service is its ability to verify the bank account information of customers in real time. This means that businesses can quickly and accurately verify the bank account information provided to them by their customers. This also allows them to provide a seamless and secure experience. This can help businesses build trust with their customers and prevent fraudulent activities such as account takeovers.

Lyons Commercial Data’s bank account verification service is also highly customizable. Businesses can tailor the bank account verification process to suit their specific needs, such as by choosing the level of verification required and the information that needs to be verified. This makes it easy for businesses to comply with regulations and ensure that they are only providing services to legitimate customers.

Another important aspect of Lyons’ bank account verification service is its security. The service uses advanced encryption and security protocols to protect sensitive customer data and prevent unauthorized access. This helps businesses protect their customers’ privacy and prevent data breaches.

Overall, Lyons Commercial Data’s bank account verification service is an excellent solution for businesses looking to verify the bank account information of their customers quickly and securely. With its real-time verification, customizable options, and strong security measures, it is a reliable and efficient way to prevent fraudulent activities and build trust with customers.

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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.

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In early 2021, NACHA will be changing compliance standards for routing number and account verification used for internet payments (WEB debits). The current iteration of the WEB Debit Account Validation Rule (Article Two, Subsection 2.5.17.4) states that originators of WEB debit entries must use a “commercially reasonable fraudulent transaction detection system” to screen for fraud. Beginning March 19, 2021, the wording of the rule will update to require “account validation” to be part of fraud screening systems.
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