Different businesses have different ACH pain points. That’s why one bank account validation service makes sense.

Anyone managing ACH payments understands that one size does not fit all when it comes to bank account validation. The demands on one market sector may not be the same as another. But take a step back and you can see there are five common pain points in most BAV use cases, and chances are you’re struggling with at least one of them.

• Complex Validation Process
  When data isn’t easily accessible, customers must wait for bank account verification and approval, prolonging onboarding and causing frustration.

•  Friction for Customers
  Long and complicated authentication processes can lead to consumer abandonment and loss of reputation.

• Potential Fraud & Errors
  Incorrect account details are a common ACH issue, resulting in unreliable payments, unhappy customers, and potential fraud.

• Lack of Real-Time Solution
  Companies that don’t enlist automated real-time BAV methods operate at a disadvantage to more tech-driven competitors.

Smarter bank account validation for each sector

Each business needs to consider how increased ACH transaction volume presents both opportunity and challenge, and how market-specific solutions address those pain points.

1. In-Person Financial Services/Storefront Lending
   Pain points: Need for Real-Time Solution/Potential Fraud & Errors
   Organizations relying on complex and inefficient manual processes for bank account verification incur increased costs. Automated real-time methods to verify bank accounts address this.
   
   Validating bank accounts up-front helps prevent fraudsters who do not intend to pay back their loans and can also help address those innocent “fat finger” entry errors common to lengthy bank routing and account numbers.

2. Payroll
   Pain Points: Costs/Complex validation processes
   New employees may face long and complex application processes that prolong onboarding, delay initial wages payments, and cause frustration. Payroll processors relying on legacy bank account verification take on the increased costs and dissatisfaction with the inefficient process.

3. Payment Processors and Gateways
   Pain points: Costs/Need for Real-Time solution
   Legacy bank account verification processes can be lengthy and complex, resulting in both hard and soft costs for ACH payment processors. Automated, real-time solutions to verify bank accounts are needed to optimize both the time and expense of ACH payments.

4. Fintechs
   Pain points: Need for Real-Time Solution/Friction for customers
   Bank account verification solutions can be riddled with challenges related to account coverage and delays in receiving timely bank account verification checks.
   
   Most bank account verification processes cause unnecessary friction, leading to longer onboarding times and customer drop-off.

5. Billers (e.g. Utilities, Automotive, Insurance, Rent)
   Pain Points: Costs/Complex Validation Processes
   As billers continue to move away from card payments to ACH payments to reduce their costs, optimizing their bank account validation costs has become a prime focus.
   
   Optimizing complex bank account validation processes may result in prolonged onboarding and cause frustration and abandonment.

6. Collections
   Pain Points: Costs/Complex Validation Processes
   Collection agencies are focused on managing high operational costs. The best-in-class agencies optimize their bank account validation process to minimize the hard and soft costs of ACH payments. Lengthy and complex bank validation processes can impact the effectiveness of a collection agent securing a valid bank account for payment.

Ai Validate Bank Data delivers a timely solution

As a fintech leader in machine learning and predictive analytics, Accelitas has developed ACH solutions that address common pain points and optimize bank account validation across a variety of sectors.

• Comprehensive Coverage
  Ai Validate BD instantly validates 100% of U.S. bank accounts, significantly reducing the most common Nacha return codes (R03 and R04). This real-time, comprehensive coverage ensures fewer payment disruptions, minimizing customer frustration and operational inefficiencies, and directly addressing critical pain points identified by Nacha.
• Superior ROI with Targeted Optimization
  By strategically targeting and eliminating common ACH return codes, Ai Validate BD optimizes your resources, reducing both hard costs (manual corrections and transaction fees) and soft costs (customer dissatisfaction and lost opportunities).
• Enhanced Customer Experience
  Ai Validate BD leverages predictive analytics and ML-driven scoring to deliver rapid account validation within your existing workflow. By streamlining onboarding and checkout processes, you enhance customer experience, minimize transaction drop-off, and support consumer choice, safeguarding revenue and customer loyalty. 

So, how does a free bank account validation data test sound?

If you haven’t given much thought to your automatic bank account validation, this is a great place to start. Let Accelitas give you a free bank account validation data test to find out how Ai Validate BD can deliver just what your online business has been missing.