Why not rely only on microdeposits?

Microdeposits are slow and sometimes fail to appear. Instant account verification provides faster ownership and status signals that reduce abandonment and returns.

What is beneficiary name matching?

Comparing the account holder name against the customer name with normalization to reduce misdirected payments and mule activity in payouts.

Which return codes matter most?

Insufficient funds, account closed, invalid account, and unauthorized. Tracking patterns helps adjust thresholds and risk scoring for future transactions.

Any compliance considerations?

Follow NACHA rules, store minimal data, encrypt at rest and in transit, and provide clear consent records for debits and verification pulls.

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ACH Verification

Overview

ACH verification confirms the legitimacy and readiness of a U.S. bank account for Automated Clearing House debits or credits. Methods include instant account verification, microdeposits, and account status checks such as negative files or early warning signals. For risk management, add beneficiary name matching and account tenure or balance checks when permissible. ACH verification prevents returns and fraud by catching closed, invalid, or unauthorized accounts before initiating transactions.

Programs must encrypt routing and account numbers, log consent, and comply with NACHA rules. Operational controls include retry limits, prenotes where appropriate, and monitoring of return codes such as R01 or R10 to refine policies. Integrated into onboarding and payouts, ACH verification improves success rates, reduces operational costs, and supports compliant payment flows.

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