How Check Verification Works
Check verification uses extensive searches of positive and negative databases to confirm a range of information on the bank account from which funds are being debited. Check verification include information contributed directly from financial institutions as well as multiple other sources. For instance, many merchants contribute to negative databases, identifying potential fraudsters.
The most basic check verification service confirms that bank account & routing numbers are correct. For eCommerce and MOTO merchants, this one step alone can rescue the order while saving you money.
It’s easy for buyers to enter routing and account numbers incorrectly when shopping online. And orders taken by telephone can be easily be keyed in incorrectly by customer service representatives.
Reducing data entry errors by confirming account and routing numbers before submitting an electronic check for processing greatly reduces return rates. And saves you money on electronic check processing fees by slashing costs associated with returned transactions.
Check verification confirms that the account is open and is in good standing. You confirm that there is no history of bad checks written from the bank account. This helps reduce administrative returns while safeguarding you against potential fraudulent orders.
Check verification services confirm there is a positive balance in a bank account. Although this is helpful, keep in mind that funds are not “frozen” to cover ACH processing or check transactions as is the case in card processing.
Same day ACH is now here so ACH electronic checks clear faster than ever before. Faster ACH processing increases the likelihood that funds will be available when the transaction clears.
Same day ACH debits your customers’ bank accounts the same day as the order is received if transactions are submitted by the file cut-off time. Or the next day when transactions are received after the cut-off time.