Agile Payments Blog

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Bank Account Owner Authentication Service: Moving Beyond Check Verification Services

Aug 6, 2019 11:39:00 AM

Bank Account Owner Authentication Service: Moving Beyond Check Verification Services

Check acceptance risk mitigation tools are an absolute necessity in the 2019 payments landscape.

Bank Account Owner Authentication Service (AOA) mitigates the risk of fraudulence for businesses, utilizing tools that grant real-time insight on the business or person whose check payment your business wants to accept or enroll in a recurring billing plan.

Check Verification Services are somewhat limited, and can only verify that an account exists and has funds in it, while AOA is the only service that validates important data elements such as phone numbers, date of birth, driver's license numbers, etc., and matches them against records held at the customer’s Financial Institution [ ODFI ] .AOA-BankAccount

For example, consider an error occurring during data entry stage of a customer’s onboarding. Firstly the mistake must be discovered. Once discovered, the customer must be contacted (usually multiple times), with the typical success rate of contacting a customer and extracting the relevant information being around 5%. This will lead to additional admin costs and friction points for one’s customer. Thus, failure to gain proper checking account information will lead to lost clients.

As a business that enrolls customers for recurring ACH Payment debits, or accepts electronic or paper checks you must move beyond the “account is open and in good standing” check verification service. Problems like these can be easily avoided by employing a Checking Account Owner Authentication Service.

Businesses can significantly reduce these risks and improve customer experience for a small one-time fee. Costs range from .80-$1.25 with higher volume clients getting custom quotes.

Benefits include:

  • Eliminate the need for account-owner login credentials
  • Improve customer experience and reduce abandonment rates
  • Reduce unauthorized and administrative ACH and check returns
  • Reduce Account Take-over risks
  • Reduce unauthorized access to customer accounts

Go here for information on Checking and Savings Account Validation.

Contact AgilePayments now to learn more about Checking Account Owner Authentication Service




Coleman Akey
Written by Coleman Akey

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