What is Micro Deposit Verification?

Protect Your Bank Account: How Deposit Verification Adds Security

When bank account information is exposed to a new system, it’s crucial to have a robust verification process to prevent fraud and financial mishaps. Micro deposit verification uses a two-point approach, making it impossible to circumvent.

If the micro deposits are not received by the account holder, there may have been an error in the account information received, such as a mix-up of digits. Once the micro deposits are sent, the account holder then has to verify the exact amount of each deposit. This ensures end-to-end security; if the bank account information is wrong, or if the correct amount of money is not received, financial institutions are alerted to the issue and larger transactions are prevented.

This protects both sides of the equation. The banks and financial institutions can reduce financial losses and avoid involvement in fraud, and account holders can rest easy knowing the connection is secure and properly set up.

Benefits: Micro Deposit Verification Stands Out

Not only is instant account information via micro deposits a reliable and secure method, but it comes with many other benefits, such as:

Low Costs

Because micro deposit verification uses very small sums to test the account connection, it is low cost for banks and fintech platforms. Other verification methods can be tedious and costly for account holders and financial institutions alike.

Non-Invasive

Instead of conducting putting users through never-ending account verification tests, deposit verification is quick and easy. If it works properly, the only thing uses have to do are submit the exact dollar amount of the deposit that is shows up in their bank account.

Use-Case Variability

Affordable and trusted, instant micro deposits can be used by any bank, investment platform, or fintech company. With the number of online transactions made in today’s world, a broadly applicable approach to verifying linked accounts is imperative.

Customer Satisfaction

As a major plus, customers prefer micro deposits over other verification methods. There is no need for them to undergo credit checks or difficult verification processes; it only takes 10 seconds to find peace of mind – and that’s a major win.

Summary: In Summary

·      Using small deposits to verify a user’s account information, micro deposit verification reduces risk exposure for financial institutions and their customers.

·      When signing up for a new payment platform or related fintech solution, users will receive small deposits – like $0.35 or $0.06 – and be asked to verify the exact amounts.

·      If a user does not receive the deposits or gets the amount information incorrect, it could be a sign of fraud or a case of incorrect bank account information.

·      Because the micro deposit verification process is accessible, affordable, and reliable, it’s today’s preferred method of instant account verification.