Validating bank account ownership is a critical part of the vendor onboarding process.
After all, every organization wants to be sure that it is paying the right supplier or individual.
But most organizations still rely on manual processes for authenticating bank account ownership. Many organizations collect bank account details from suppliers through unsecure emails.
But many organizations are putting themselves and their vendor relationships at risk by relying on manual processes for onboarding suppliers. Finance and procurement teams waste lots of time gathering documents, pushing around paper and emails, rekeying data, chasing down missing and incorrect details, fixing errors and responding to vendor inquiries about where things stand.
The problem with manual bank account authentication
Manually verifying bank account ownership is time-consuming.
Things also are more likely to slip through the cracks when an organization manually validates the ownership of a bank account.
- A bank account number may be invalid
- A bank account may not belong to a supplier
- A bank account may be owned by a bad actor
- A bank account may be closed
2021AFP Payments Fraud and Control Survey Report Key Highlights (jpmorgan.com)
How to Automate Bank Account Verification
Reduce your risks with automated bank account verification from VendorInfo.
- Authenticate the owner of an account
- Validate that the account is open
- Pre-verify ACH, Real-Time Payment (RTP) and wire payment transactions
- Receive areal-time verification of bank account ownership
Automation makes it easy to ensure that an organization is paying the right party, and not a fraudster.
How It Works
VendorInfo’s solution automatically verifies bank account ownership by:
- Account Name
- Street Address, City, State and Zip Code
- Bank Account Number
- Routing Number
- Tax Identification Number (TIN)
VendorInfo’s secure supplier portal enables suppliers to effortlessly enter their bank account details online – virtually eliminating the risk that sensitive information will be intercepted by fraudsters.
Automate Bank Account Verification
See for yourself how easy and secure it can be to verify bank account ownership. Click here to book your online demo of VendorInfo’s bank account verification solution today.
Frequently asked questions
Can suppliers update their own bank details in a self-service portal?
Yes, but only with verification. When a supplier changes payment details in the portal, the new account should be verified for ownership automatically and approved before the next payment. VendorInfo, InvoiceInfo's companion product, verifies global and domestic bank accounts submitted through its portal in real time, so a self-service update does not become a fraud route.
How do you verify a supplier's bank account before paying?
Match the account holder name, account number, routing number and tax ID against authoritative banking data to confirm the account is open and owned by that supplier. Automated verification returns the answer in real time and works for ACH, wire and RTP payments.
Why verify bank accounts if suppliers already use a portal?
A portal controls who can submit bank details; verification proves the details are correct. Criminals impersonate suppliers through email and phone, and verification is what catches a new account that does not belong to the real supplier.