How to Verify an eCheck

Posted on

If your business accepts payments, staying up to date about check verification is crucial. This is especially important as technology evolves and eChecks and ACH payments are becoming more prevalent. Accepting a bad or fraudulent check that bounces can cost you money.

You can verify eChecks manually or through an automated process. Both methods can help you verify if the check is valid, but you won’t always be guaranteed there’s money in the account when the check clears. Adopting robust options to verify eChecks and ACH payments can assist in authenticating captured data before processing and authorization.

Manual eCheck Verification

You can manually check for verification by examining some crucial details of the sender. Ensuring they have valid proof of identity can be the first step, after which you can look for any suspicious signs around the eCheck itself. Verify that the amount you’re due is accurate, as well as the security features that accompany the eCheck. Things to look out for can include a unique security code, eCheck verification number or a watermark accompanying the eCheck.

With ACH payments, checking for the correct transaction details and ensuring that the account holder authorized the payment can help safeguard transactions. You can also call the relevant bank to ensure the payer is legitimate.

If you deposit the check and there’s enough money in the account to cover the transaction, you’ll have to wait a few days before it clears. The account holder can withdraw all their funds during this window. If you deposit a check and there’s no money, you’ll have to pay bank fees and attempt to retrieve the funds you’re owed.

Automated eCheck Verification

You can do an automated check verification through the original payer’s bank. These are only partially helpful, as the bank only flags accounts with a history of writing bad checks. The bank doesn’t divulge whether the account has the available funds.

Factors to Consider When Verifying eChecks

When your business receives an eCheck or ACH payment from a customer, there are various factors to remember before you deposit it. A valid bank account with no funds leaves you with bank fees. You’ll also have to take further steps to retrieve your funds for products or services rendered. Fraud, manual errors and bad checks can cost your business money and delay payments received.

Consider the following elements when accepting eChecks and ACH payments from customers:

  • It’s important to verify whether the account exists to mitigate fraud and financial loss.
  • You could be working with a bad routing number or a blacklisted TRN, which can be expensive and delay payments.
  • Invalid checksums or check-digit algorithm failures can cost you money and time and indicate an attempt at fraud.
  • Using sophisticated measures, a fraudster may fabricate an account that seems open and valid but isn’t, leaving your business vulnerable.

These factors can be ascertained with sophisticated databases and services. Additional verification consults the status reported by the customer’s bank. Validating an account in real time is one of the most essential steps you can take in EFT and eCheck verification.

Challenges in eCheck Authentication

As the financial industry develops more sophisticated ways of securing the transfer of funds and amplifying fraud prevention, criminals follow suit. Fraudsters are increasingly finding new ways to commit eCheck and ACH fraud, including using legitimate bank account numbers and routing numbers to impersonate people, emptying accounts right before an eCheck clears and other sophisticated methods.

Common approaches to fraud include:

  • Account takeovers: Fraudsters gain access to someone’s bank account, creating fake eChecks or conducting unauthorized ACH transactions.
  • Fake eChecks: Criminals steal bank account information and use it to create counterfeit eChecks, which they then use to pay for goods.
  • Identity theft: Scammers steal personal information to create new bank accounts or gain access to existing ones. Using this information, they transact with fraudulent eChecks or conduct unauthorized ACH transactions.
  • Phishing scams: Fraudsters send messages that appear to be legitimate, trick individuals into revealing their account information, and initiate fraudulent eCheck and ACH transactions.

How CSG Forte Can Help

CSG Forte reduces the complexity of payment processing and authentication. Our eCheck payment processing provides a seamless, safer way to accept eChecks and ACH payments.

You can accept electronic debit payments, credit cards and eChecks safely with our seamless, unified payment platform. Do business confidently with built-in eCheck fraud prevention. Sensitive data is kept safe with encryption, while tokenization replaces your client’s information with a meaningless code. You can process all electronic payments including eChecks on one simple, secured platform.

CSG Forte’s eCheck Authentication Solutions

CSG Forte has adopted several security mechanisms to bring you a comprehensive solution and ensure you get your funds with each transaction. You can integrate our secured platform seamlessly with your existing software.

Here’s a look at our check authentication process:

  • eCheck authorization: Your client provides their bank information through the online authorization form.
  • Robust electronic processing: The clients’ details are validated, and the amount is charged to their account. You request the funds through the ACH and receive your money after two to three business days.
  • Real-time authentication: Validation occurs in real time, reducing the possibility of complications and fraud down the line.

We encrypt the process on both ends, and tokenization ensures all parties’ details are kept secure.

Key Features of CSG Forte’s eCheck Verification

We’ve added several features to our check verification process for extra security:

  • MICR analysis: We’ve included secure MICR line analysis on all our eChecks to help you compete with legacy methods while verifying sensitive data.
  • Account confirmation: With our Validate program, you can confirm bank account ownership by seamlessly authenticating the payer’s identity with rapid and actionable responses.
  • Robust authentication: You can check for an account holder’s full name or business name and ensure valid payments are processed, reducing returned eChecks or reversed ACH payments.
  • Validate and Validate+: Get account ownership and bank account status in real time during EFT transactions. Validate+ offers additional verification to mitigate fraudulent transactions.

Integrating CSG Forte for eCheck Verification

CSG Forte understands you need easy, simplified payment solutions that can integrate with your existing software. You can easily set up eCheck with our built-in security solutions alongside your existing platform or use it as a stand-alone solution.

Our simplified solution makes implementation seamless and scalable. It’s language- and software-independent, so you won’t need to alter your system or spend hours integrating the platform.

Partnering with CSG Forte gives you ongoing support, including:

  • Resources: You’ll have access to onboarding resources during implementation, allowing you to make the transition easily.
  • Training: We’ll train you on how to use your new software so you can manage it optimally.
  • Client care: Our dedicated team of customer service specialists will tend to any questions or concerns you may have.

Choose CSG Forte for Reliable eCheck Verification

Check verification can save you from paying expensive bank fees and help prevent profit loss. Advanced, robust authentication methods can help keep your business and funds safe.

Our eCheck technology brings you all the convenience of a check in a safer, electronic form. End-to-end encryption and tokenization help protect sensitive data and prevent fraud. Get a unified solution and validate your checks confidently with CSG Forte. You can get started today or complete the form on our contact page to reach out for more information. You can also call us at 866-290-5400, and a payment expert will gladly walk you through the process.