BofA launches Account Validation service

Prior to initiating an electronic credit or debit payment, a client using the service – called Account Validation – can verify the status of an account and authenticate its owner.

Supported by bank-owned Early Warning Services, the new option can respond to clients’ inquiries in near real-time with companies able to take advantage of it before making payments to consumers via ACH, wire transfer, or a real-time payment.

BofA says Account Validation also assists in helping prevent misdirected payments, which occur when a payee inadvertently provides an incorrect account number.

David Kretz, head, global payments, global transaction services, BofA, says: “With fraud on the rise, companies can no longer make assumptions about whether the person or entity on the other end of a payment is who they say they are.

“Account Validation and other fraud prevention tools are essential for today’s treasury teams.”