What You Must Learn from Checking Account Verification Services?
An individual or a business can have the ability to check the validity of draft presented or actual check or perhaps, verify the account holder’s history or both using checking account verification services. As a matter of fact, there are plenty of ways that can be used to provide this service similar to getting in touch with the bank that issued the check to get the information about the account’s status, checking the account numbers and routing and that they’re all valid using algorithms and even check several databases with account or negative history.
In addition to the banks themselves, there are the 3rd party companies that do offer checking account verification systems.
As a matter of fact, these verification services are not new in the US. On the other hand, if it is outside the US, declining the check usage for the favor of debit card and credit card means that the merchant rarely accepts the checks and for that, using checking account validation wasn’t necessary anymore. As a matter of fact, check verification services may be using multiple methods or it may combine numbers in order to verify the validity of the check.
Negative check database – negative check database does have comprehensive list of people who either paid a bill using a check that was returned or also referred to as bouncing check or wrote a bad check at retail location. Basically, historical data check verification services that make use of national network together with negative check database may be difficult for businesses and consumers to have themselves removed after jumping on it.
This form of verification is typically linked to the account holder who writes the check and running the verification via their driver’s license number. This information is very valuable for loss prevention as it identifies habitual or historically check bouncers who have high probabilities to reoffend.
Account history database – this provides database with historical data of the account itself and not only the person who writes the check which allows better checking account validation. This kind of system uses real-time checking account verification to record the account number for all the checks that do not clear and could tell if that checking account has returns prior.
Due to the reason that the system is based mostly on history of all the checks written in the account, it is able to provide valuable information similar to negative check database except for a fact that the info is not based on the person’s identity who has written the check. As a matter of fact, echeck verification services is more valuable when you’re taking business or company check.
With the increasing demands for checking account services, it is not really a surprise that there are also available checking account verification online.