What is a microdeposit for ACH verification and why is it necessary?

A micro deposit is a small, amount of money (often less than $1) sent to a bank account as part of the verification process for ACH (Automated Clearing House) transactions. Here’s how it works:

Purpose of Micro Deposits

1. Verification: To confirm that the account details provided are correct and that you have access to the account.
2. Ownership Confirmation: To verify that you are the legitimate owner of the account and have authorized its use for ACH transactions.

How It Works

1. Initiation: When you manually link your bank account for ACH transactions, there will be two small amounts into your account.
2. Notification: You will need to check your bank account statement or online banking to find the exact amounts of these deposits.
3. Confirmation: You then provide these amounts back to us which can be done online under your bank account page, or you can give us a call. This step validates that the account details are correct and that you have access to the account.

Benefits

• Security: It ensures that the account is valid and helps prevent fraudulent activity.
• Accuracy: It helps confirm that funds will be correctly deposited or withdrawn from the intended account.

Micro deposits are a simple and effective way to verify account information and set up ACH transactions securely.