Before a consumer may utilize a product or service, many businesses demand that their bank account be verified. Bank account verification is a crucial step in making sure consumers’ money goes to the appropriate destination, whether it includes more traditional techniques like verifying a bank statement or more modern developments like open banking. In reality, it’s frequently a crucial impediment to fraud and expensive errors.

Verification of a bank account number

Bank account number verification is the process of verifying a customer’s bank account allows you to make sure they are the same person listed on the account they are using to pay for your service. Typically, the client is required to present reliable documentation proving account ownership, such a bank statement. Customers can occasionally establish their identification by supplying information that corresponds to information stored by their bank or on file with a credit agency.

Bank verification- its importance 

Bank account verification is crucial to avoid fraud and now more than ever for businesses to safeguard their clients against fraud, which will cost the economy £730 million in 2021 due to losses through remote banking, payment cards, and checks.

Compliance is another important consideration. Companies are required by law in various sectors to confirm the identification of account holders. Account holder name checks can be a part of a company’s Know your customer (KYC) and anti-money laundering (AML) procedures.

A person entering inaccurate bank account information can be avoided via bank account verification. At best, these errors might result in a payment failing or bouncing, which can annoy consumers. 

Bank Verification helps to prevent fraud 

Keeping consumers safe is actually a big element of giving them a good customer experience. Nine out of ten respondents to an Entrust study said they were concerned about bank or credit card theft. Customers might feel more confident knowing that a merchant has verified their bank account details and that their data is protected.

How to verify a bank account number?

Businesses use a variety of bank account verification techniques to confirm the account details of their clients. These consist of:

Micro Deposits: Customers provide a merchant with their account information to make small deposits. The retailer then makes two extremely small transfers into the client’s account to confirm ownership.

Sending bank statements: It entails a client sending official bank records to a business. These statements demonstrate the customer’s identification by identifying them as the account owner.

Credit checks: a business compares account information with data stored on file at a credit agency. The account is validated if the data is accurate.

Open banking: A retailer may instantly connect to their customers’ bank accounts by working with an open banking provider. After that, the provider immediately matches the customer’s name and account number to the information on file with the bank.

IFSC code verification

The eleven-digit IFSC code is a unique mix of letters and numbers. It is utilized for NEFT, IMPS, and RTGS transactions to transfer money online. This code is often printed on the cheque book that the bank gives you. Additionally, it is printed on the cover of the account holder’s passbook.

Steps to verify IFSC Code

1. It must have 11 characters.
2. Upper case alphabets should be used for the first four characters.
3. The fifth character has to be 0, and not 4.
4. Ordinarily, the final six characters are numeric, however they can also be alphabetic.

Bank Account Verification with Surepass

With the help of our strong API interface, you can secure and simplify the bank account verification procedure. By validating bank accounts seamlessly, rules are adhered to, risks are reduced, and customer experiences are improved. You may check account ownership, account status, IFSC code, and carry out real-time bank validations with our bank account number verification API. 

With Surepass’s Bank Account Verification API, you can increase operational effectiveness, lower fraud, and streamline customer onboarding. Put your faith in our dependable solution to simplify your verification procedures and improve the whole client experience.

Features of Surepass’s Bank Account Verification API

Connect and Play

We offer a straightforward and user-friendly interface, and the bank verification API integrates with ease.

Avoid fraud

The procedure will protect any organisation that has been or may become a target of people by protecting their bank accounts and prevent your money from flowing into the wrong bank account.

Reliable and Accurate

The information from the bank connected to the bank account number and ifsc code is checked by our system. As a consequence, the outcomes are always legitimate and accurate.