Micro-deposits are an easy way to verify a customer bank account. It’s a method used in various services to ensure that the individual owns the bank account they are adding to your service.
To make micro-deposits a normal workflow looks something like this:
- Acquire routing number and account number from your customer
- Acquire basic account information from your customer
- Use our White Label ACH API to send money (small deposits) to that account
The deposits sent via bank transfer will show your company name on your customer bank account so they know exactly who the deposit came from.
If you decide to provide micro-deposit verification yourself, you can select the amounts to deposit into the customers’ bank accounts. It could be pennies, dollars, or any variation. If you choose the micro-deposit method of bank verification with Dwolla, Dwolla will transfer two deposits of less than $0.10 to your customer’s linked bank or credit union account.
A different combination of multiple deposits should be used for each customer. For example:
- Deposit #1: $0.12
- Deposit #2: $0.01
- Deposit #1 – $0.05
- Deposit #2 – $0.07
- Deposit #1 – $0.06
- Deposit #2 – $0.02
If you’d like to avoid managing the deposit amounts, you can use our micro-deposit endpoint and we will calculate and track the micro-deposits for you to make things easy. After initiating micro-deposits, two random amounts will post to your customer’s bank account in 1-2 business days. Once your customer sees these deposits in their account, they need to verify the two amounts in your application.
When working with our ACH API to make micro-deposits you also will not have to worry about formatting a ACH file. You simply send instructions to a API endpoint to make the ACH transfer programmatically.
Instant Account Verification
Dwolla has focused on making the bank transfer network easy to use. We also offer instant account verification in place of the two deposit method for customers who would like to get their customers up and running even faster.
“Verifying a users’ identity and then transferring money in a way that is much more secure and transparent—like ACH—saves us, on average, 30 minutes to an hour of drive-time for each deal. With the way we are setup using Dwolla’s IAV, the buyer never has to punch in their account and routing information."