How do I verify my customer’s bank account for accepting ACH Direct Debit payments?

ACH Direct Debit payments can only be made through verified bank accounts. Zoho Payments supports two methods to verify your customer’s bank account:

• Micro-deposit verification after a customer’s bank account details are added in your Zoho Finance app.
• Instant account verification when your customer directly makes an ACH Direct Debit payment.

Micro-deposit Verification

Micro-deposits are two small deposits (in cents) sent to the customer’s bank account to verify the account when their bank details are added through a Zoho Finance app. These deposits will show up on their bank statement with descriptors like AMTS or ACCTVERIFY. Based on the descriptor, your customer will have to do the following:

• AMTS – The customer must provide you the two exact deposit amounts listed in their bank statement.
• ACCTVERIFY – The customer must provide the 6-digit verification code that starts with “SM”, found in their statement descriptor.

After you receive the deposit amounts or the verification code, you will have to verify your customer’s bank account.

To verify:

1. Go to your Zoho Finance app (Zoho Books, Zoho Inventory, Zoho Billing, or Zoho Invoice).

2. Navigate to the Overview tab of the customer for whom you have added the bank account details.

3. Scroll to the Bank Account Details section, click the Gear icon next to the specific bank account, and click Verify.

4. Enter the deposit amounts or verification code shared by the customer from their bank statement.

   

5. Click Verify.

You will have verified your customer’s bank account.

Instant Account Verification

Instant account verification is used when customers directly make ACH Direct Debit payments. Your customer’s bank account can be verified instantly using a third-party service, Stripe Financial Connections, which allows them to link their account securely.