Version: 1.0

Account Validation

Mitigate risk, reduce financial loss and minimize cost of exceptions through a straightforward REpresentation State Transfer (REST) interface.
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Overview

The Account Validation API enables partner applications to prevent fraud and securely verify account ownership and status before sending a payment. With a few key details, partner applications can validate customer account information before a credit or debit request is submitted. Account Validation services can be leveraged as a precursor for any type of payment transaction providing partners and clients the assurance they need to send their money movement request.

Features

Initiate an inquiry to validate account details for personal or business accounts, such as account number and routing number, and account ownership through access to a nationally-shared database of checking and savings accounts with data from thousands of trusted financial institutions.

Workflow

Account Validation - workflow

Example use cases

Scenario one:

George is a customer service representative for the local cable company. He’s speaking with Joanne, a customer that wants to set up direct debit for her monthly cable bill. Due to new regulations, George must validate the customer’s account information prior to setting up the direct debit transactions. He enters the customer’s account information (their bank’s ABA number and their checking account number) and within seconds, he receives confirmation that the account information is valid. He proceeds to set up the direct debit for Joanne and initiates the first transaction.

Scenario two:

Linda is a claims adjuster for a major insurance company and is responsible for sending claims payments following accident investigations. She wants to make sure the funds are received promptly and securely by the intended recipient. With Account Validation, she can enter the claimant’s provided account details (their bank’s ABA number and their checking account number) as well as some personal information. She updates the claimant’s name and address and immediately receives confirmation that the account is open, in good standing and is owned by the claimant. She proceeds to initiate an ACH credit to their account knowing that the funds will confidently be secured by the intended recipient.

Scenario three:

Marco needs to pay his utilities bill. He logs on to his utility provider’s website and enters his account information. As he saves his account information, the company’s website sends Marco’s account information to be validated and within seconds the validation is complete, and Marco can continue setting up his payment.

Requirements

Inquiry request and response data should be stored locally to support any troubleshooting and Fair Credit Reporting Act (FCRA) reporting requirements.

Restrictions

  • Limited to domestic (US) accounts only.
  • Account Validation is classified as consumer reporting. Users of consumer reporting, such as U.S. Bank clients using Account Validation, must follow the requirements of the federal FCRA. Severe penalties apply for failure to comply with FCRA.
  • At least some of the transaction activity being validated must be originated through U.S. Bank to prove permissible purpose under the FCRA.
  • Eligibility requirements apply. A vetting process must be performed to ensure your information security and other practices will keep Account Validation information protected.