Instant Bank Account Verification

Background: Micro-Deposit Verification

Here's why accounts have to be verified and how the current micro-deposit process works.

If you have a bank account and you give a 3rd party authority to reach into that account and withdraw money, the 3rd party system needs to know that you actually control that bank account. Because you're giving it the authority to withdraw funds, it's different than your payroll company (for example) which typically makes deposits and with whom banks have a relationship with.

Examples of 3rd party transactional systems:

• PayPal
• Investment brokers (like Vanguard and Fidelity)
• Payment processors (like Stripe)
• Other banks

These systems almost all use the "micro-deposit" method of verifying account ownership. They make two teeny deposits into your account. It takes a couple days for them to show in your bank account history. Then you, the account holder, have to head back to the system being connected (in our case, Stripe via PCO Giving) and verify the amounts deposited. This way, Stripe knows you're most likely who you say you are, you have access to the bank account being connected, you've given permission to withdraw money, and that you have the right account. It lowers the chance of fraud and incurring fees from the bank for errant withdrawals.

So, micro-deposits work great... but they're slow and frankly annoying. You can see why we're so excited about this new instant verification feature! It provides all the benefits of account verification without the interruption and the waiting.

And that's our two cents on micro-deposits. Get it? ...no really, did you get that $0.02?