Bank Account Validation
May be these companies have a connection to the Automated Clearing House (ACH) network that allows them to determine validity of bank account validation.
Perhaps you would like to establish your own connection to the network validate bank accounts?
If that is the case and you're wondering where and how to go about getting some information?
Note that if your company are a sufficiently accredited organisation, you can lease a refresh able database of valid bank sort code and bank account details. Check out the following places for more detail information:-
- ATM network - Pulse, and Star
- SWIFT network (European the best solution)
Before contacting this organisation, be sure you know what level of validation you are looking for. There are databases of valid bank codes; other sources perform further checks such as modulus check or luhn digits check of the account numbers, etc.
Direct connection to some network validates bank accounts providers may also allow cross-reference of the account number and the name of the account holder.
Some local network validates bank accounts use a combination of external vendors and in-house algorithms which does have influence on the cost you pay. Also the regions your system requires validation for.
Some providers are country-specific and may be more cost-effective, whereas others will offer a wide range of territories.
Try and make sure that you verify from your supplier how often their databases are refreshed, to avoid a poor customer experience rejecting payments that have valid details.
If you're in United States (US) of America and providing a utility billing service and you're after US ACH bank account validation. Then, you will be validating against a branch code, but not the account number in the US.
This is why payroll services often require an extra day or two before initiating Direct Deposit in order to "PreNote" the account (validate it by performing a no-op ACH transaction) because you really can't verify it otherwise.
Bank account validation service
Here is how you can take a sort code and an account code and validate them against bank records