← Transfers


When adding a new external transfer account, it’s vital to ensure you’ve added the correct information. The most secure route to do so is using micro-deposits, which are the small transfers that the end user must validate before transferring to or from the new account. It’s simple to use, and most importantly, it helps protect your end users against fraud.

How it works

When an end user adds a new external transfer account, the app prompts them to validate two deposits of a random value under one dollar to the account selected. End users simply need to enter the amounts of the micro-deposits by selecting the external transfer account again, and they’ll be able to use it immediately. It’s simple to use and simple to set up.


While micro-deposits are simple, your financial institution can customize a few details. Your institution has control over the following micro-deposit fields:

  • Number of days before a micro-deposit is invalidated (38 days by default and this can be configured in People)
  • Maximum micro-deposit amount ($0.99 by default)
  • Maximum failed attempts to enter micro-deposit amounts before the account is locked out (9 by default, see faq for more details)

NACHA standards

Banno micro-deposits follow all NACHA micro-entry standards. This outlines a number of common sense rules, including:

  • Micro-deposits must be $1.00 or less
  • The Company Entry description must include the term ACCTVERIFY
  • All credits must coincide with a debit of equal or lesser value

Credit unions

Importantly for credit unions, this also means micro-deposits require a unique group number. Credit unions must provide a unique group number number to a support representative to configure micro-deposits and allow end users to continue adding new external accounts.


How are micro-deposits credited back?
Immediately after the two micro-deposits are deposited, a single debit will be charged to the account equalling the total of the two microdeposits and return the money to the micro-deposit account.
How does a user get locked out of attempting micro-deposits?
An end user can attempt to validate micro-deposit amounts three times before they become locked and have to reset the micro-deposit amount to try again. This user can do this process three times before being locked out and needing to reach out to your institution to get unlocked. They will always have three attempts per lock out, but the number of lock outs allowed before needing to contact their institution can be changed. For example, you can configure a user to have five attempts before needing to contact the institution, meaning they will have five attempts with three guesses each attempt. This would make the total 15 guesses before needing to reach out to their institution.