Microdeposits
Overview
Microdeposits are small test transactions, usually under $1, sent to a bank account to verify ownership and validity. Customers confirm the amounts received, proving they control the account. This method is commonly used in the US and other regions without real-time account verification. While reliable, it can take several days, creating delays in onboarding.Financial institutions, payroll providers, and fintechs use microdeposits to reduce fraud and ensure funds are linked to the correct account. Regulators view them as a secure though slower method for account verification. With instant account verification (IAV) gaining traction, microdeposits are increasingly a fallback method where APIs are unavailable.
Stay ahead of risk with Signzy
Explore tools that help you onboard, monitor, and verify with confidence
Bank Account Verification
Instantly verify bank account details to confirm account ownership and validity for secure financial transactions.
One Touch KYC
Launch global KYC flows with built-in document OCR, liveness checks, deepfake detection, and AML, all through a single, customizable dashboard.
Database Verification
Instantly verify user information by connecting to trusted databases across jurisdictions for accurate, compliant, and faster onboarding.
Related Terms
FAQ
What are microdeposits?
Small test transfers sent to verify bank account ownership.
Why are they used?
They provide a reliable way to confirm account validity.
Who uses them?
Banks, payroll processors, and fintechs.
What is the drawback?
They take longer compared to real-time verification methods.