After adding your bank account, you might notice it's being verified. This is a crucial step to ensure that the bank account added corresponds to the beneficiary, and faster transfers can be made.
Additionally, the verification process ensures we aren't sending money to closed or invalid accounts or to the wrong beneficiary. It's all part of the compliance offering we have, which thwarts money laundering and other illicit activities.
This process is very fast for bigger banks that use RPT and FedNow payments, but can take 3–5 business days for smaller banks that use ACH, depending on the institution's processing times.
The verification process typically involves three key steps:
1) Account validation to ensure the account is open and valid,
2) Beneficiary confirmation to match the account holder with the beneficiary details, 3) Compliance checks to adhere to anti-money laundering laws and other regulatory requirements.
This ensures secure and compliant financial transactions.
Common Issues and Resolutions
Resetting the Verification Process
If you remove and re-add your bank account during the verification process, it will reset the timeline and start the process from the beginning. This is because the verification is handled by the bank and not the service provider.
Test Deposits
A test deposit, such as a small amount sent to your account, is often part of the verification process. However, this alone does not complete the compliance verification. Additional checks are required to ensure compliance with regulatory standards.
For US banks, you can check here all the banks that are part of the Federal Reserve’s FedNow Service, an instant payment infrastructure that allows participating banks and credit unions to send and receive transactions within seconds on behalf of their customers.
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