Unlike Credit Cards, which can be authorized in real time, the ACH world lacks a real-time authorization component. Credit cards allow merchants to authorize a sale at the time of the payment, so the merchant will know that they are definitely getting paid. A business knows that their customer has the requisite funds on their card to make their payment in real time, and the funds are reserved.
So, we can see how credit cards are validated, but how can we Verify Funds for a checking account?
Understanding How to Verify Funds online is a merchant’s best bet to reduce check acceptance risks, and verification tools reduce payment acceptance risk by validating the customer’s bank account in real-time.
The validation process helps merchants lower their risks when accepting checks through the use of real-time verification tools. Most third party entities that offer Bank Account Validation services include negative databases, routing account number validation, and ATM networks.
This post first appeared on Agile Payments Blog: Payments Solutions For SaaS Platforms, please read the originial post: here