Things to deal with during the bank account verification process
The bank account verification services allow the merchants to validate the bank details of the end clients. It ensures that the funds are going to or coming from legitimate bank accounts. It also enables to confirm whether the account that is being attached to the funding source verification is valid or not. Businesses can make use of the electronic payment gateway as an alternative payment method to meet their needs and gain pleasant user experiences during transactions.
Importance of bank account verification
The integrated plug and play account number verification API help businesses to confirm the validity of the customers’ bank accounts. They can mitigate the risks of incorrect data and potential fraudsters with the verification of a bank account. Sometimes, unauthorized returns may occur when requesting the depository financial institution to debit the amount from the buyer’s bank account to return to the account of the withdrawal. These actions lead to financial impacts like returned payments for businesses, which is why the verification of a bank account is essential to avoid the loss of funds or keep the lower return rates.
The businesses can verify the account numbers of the customers instantly by submitting the request from the API. They can check all of the recognized banking accounts across India, including all private and public banks, and cooperative banks.
Methods to verify the bank account
Two different modes are available for bank account verification, such as:
- Manual entry
The businesses will be required to enter the details, like bank account number and IFSC on the dashboard.
- API
The API enables bulk account verification in an automated way. The API will be integrated with the company’s ERP or internal system that can respond to the requests using API. The process of banking verification is used to verify the KYC to be considered as the valid proof of identity. Thus, the API assists the organizations, employees, delivery partners, or vendors to achieve smooth verification of banking accounts without disclosing the critical data to third parties.
What are the other use cases of API?
The account verification can be used to handle different business cases, such as:
- Vendor onboarding
The feature of account verification can be used at the vendor onboarding as the marketplace involves different vendors. It will be useful to make the payment appropriately to the right customers later on. With the integrated API into the ERP of the company, the operational efforts and expensive costs will be minimized.
- Employee background check
The background of a candidate can be checked out by verifying the account. It is especially useful for recruitment agencies.
The companies can opt for Payouts separately to validate bank accounts and disbursal in the bulk amount while charging differently for Payouts. Bank Account Verification (BAV) is the fastest method to attach and validate the bank account instantly by providing the online banking credentials and the banking institution. Read more to know about BAV with in-detail information.
Verification feature for marketplace settlement
Although the businesses are using the marketplace settlement, they need to choose the verification API separately for banking account verification. Based on the integration of API verification and marketplace settlement together, it’s possible to validate the bank account successfully.
Conclusion
Businesses or vendors can make online banking transactions with the restriction of costly fees and risks of funds loss or returns through the bank account verification method. The financial data can be kept private and secure against unauthorized access. The automated feature of BAV ensures the safe transaction of funds and provides peace of mind for businesses that are being proactive in avoiding fraud.
