Online Logins vs. Account/Routing Numbers

There are two ways to connect to a bank account for ACH payments:

(1) Account/Routing Numbers:

Users submit their account/routing number.

Pros:

  • Supports business accounts
  • Covers all US bank accounts

Cons:

  • Requires micro-deposits to verify CREDIT-AND-DEBIT accounts.
  • Limited Risk Mitigation Tools -- We can't access account information to verify account ownership

Best for:

  • Business Accounts
  • Consumer accounts held at smaller banks & credit unions
  • Receive-only accounts (ex: payroll, direct deposit, etc)

 

(2) Online Logins:

Users supply their online banking logins:

  • Select a bank
  • Supply online banking Username/Password
  • Verify accounts with MFA question(s) -- If the user has MFA setup for their bank account

Pros:

  • Instantly verifies the account (i.e. no micro-deposits)
  • Easier for consumers (No need to dig up account/routing numbers)
  • Reduces Risk -- We check things like account owners, recent balances & transaction histories to verify account ownership & reduce risk of insufficient funds
  • Adds multiple accounts at a single bank

Cons:

Best For:

  • Consumer Accounts
  • High Risk Platforms
  • Mobile Applications & others that require quick onboarding experiences

 

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