What is account verification?

For clients who add counterparties via API, we recommend they verify counterparties before sending or requesting payments. We currently support two methods of counterparty verification: Microdeposits and Plaid. 

Microdeposits enable you to verify a counterparty’s account details by depositing small amounts of money, often less than $1, to their bank account. Once the deposit is received, the counterparty will have to correctly describe the amounts deposited in order for their account to complete verification. Benefits associated with using microdeposits include near universal accessibility. Because microdeposits are a small transaction, they will add time to the verification process and have fees associated with them. 

Our partnership with Plaid enables clients, through their own relationship with Plaid, share processor tokens they collect from counterparties with Modern Treasury. Benefits include near-immediate counterparty verification and NSF protection enablement. Plaid is supported on a bank-by-bank basis, and some accounts may not be verifiable if unsupported by their bank.