- How it works
- Required information
A user’s bank account ownership can be confirmed through the use of “penny credit verification”. This form of account ownership verification involves sending several low-value transactions to a user’s bank account and having the user confirm the amounts sent. This is a simple, but effective way of verifying that the bank account is owned by the individual in question and that the account details provided are correct.
Note: Penny credit verification is only supported for US platforms. When penny verification is enabled on a platform, it is required for all new bank accounts.
Penny verification is only applicable for bank accounts associated with users and is not used for verifying the bank account associated with a Platform’s Principal.
How It Works
Enabling penny verification
If you wish to make use of Assembly's penny verification API, please contact our support team.
Where penny verification is required for a bank account, a seller cannot receive payments through that bank account until it is verified. Meanwhile, a buyer can make payments with a bank account immediately. However, the payment is not processed or disbursed until the bank account is verified.
A new bank account may undergo the following states while going through penny verification:
|not_verified||The bank account has not been verified; no penny transaction has been sent yet.|
|verifying||A penny transaction is sent to the bank account for verification and is waiting for the user to successfully confirm the penny amounts.|
|verified||The user has successfully verified the penny amount sent to the bank account; the bank account can now be used for receiving payments.|
|failed_verification||The user has failed to verify the penny amounts in three attempts; the bank account is now inactive.|
When a bank account is undergoing the verification, the user has up to three attempts to successfully validate the bank account through providing the correct penny amounts sent to it. After three failed attempts, the bank account becomes inactive.
Manual and automatic penny send
As a marketplace owner, you can opt to have manual or automatic penny transactions to be sent to new bank accounts on your platform.
When automatic penny send is enabled, the penny transactions are automatically sent to new bank accounts for the user’s verification. Thus, you do not have to send these transactions yourself.
Note that automatic penny send doesn't exempt your users from verifying the amount sent. This process is still manual.
Note that penny transactions, whether sent automatically or manually, are batched; they are included among the transactions which our system processes in bulk twice daily. Thus, the penny transactions may reflect on the user’s accounts at certain times, depending on which batch it gets included in.
Penny verification requires the following information to execute:
|Send penny credits||
|Verify penny credits||
When automatic penny verification is enabled on your platform, you do not need to perform step 2 (“Send penny amount”) as this is done by the system.
1) Create a bank account
Use Create Bank Account to create your User’s Bank Account within Assembly.
2) Send penny amount
Use Send Penny Amount to send two penny transactions to your user’s bank account. Penny amounts range from 1 to 30 cents.
3) Verify penny amount
Use Verify Penny Amount to verify the two penny transactions sent to your user’s bank account. This is done through your user’s input.
Note: This requires you to provide a front-end interface to your end users into which they can input the amounts related to the penny verification process.
4) Receive payments
Once the bank account has been verified, it can now be set as a disbursement account for receiving payments. See Onboarding a pay-out user for information on how to ensure that the user can now receive payments.