Micro-deposits

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.

Customization

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 (10 by default)

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.