A business or a person will be able to have an ability to check the validity of the draft presented or the actual or even verify the account holder’s history by making use of 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.
Apart from banks, you can also find 3rd party companies that are offering checking account verification systems which you can probably take advantage of.
As a matter of fact, these verification services are not new in the US. However, outside the states, decline in check usage in exchange for the debit and credit card’s favor means that the checks are accepted rarely by merchants and therefore, checking account validation was no longer necessary. Check verification services can also use a number of different methods or it can just combine numbers to be able to see the check’s validity.
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. The historical data check verification services that are using national network alongside negative check database could be hard for businesses and consumers to remove themselves as soon as they jump on it, even in case of errors.
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 system is using real-time checking account verification for recording the account number for all checks that don’t clear and can tell if that checking account has got returns prior.
Since this system is based on history of all the checks written in the account, it could deliver valuable info, much like negative check database except the fact that the information isn’t based on the person’s identity who is writing 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.