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Agile Payments Blog


Checking Account Owner Authentication Service Systems: What are your Options?

Checking Account Owner Authentication Service Systems (AOA) provide businesses with fraud mitigation tools that provide instantaneous insight about the person or business whose check payment you want to accept or enroll in a recurring billing plan.

Imagine an insurance company is enrolling a new client. If the company isn’t using a check verification service and Checking Account Owner Authentication Service System what are the potential consequences?

In this example, the customer or business is who they say they are, but there is a data entry error or the client is purposefully using an account that has been closed, is in an NSF status or does not belong to them.AOASystem

The client’s insurance policy is bound and they now have car insurance. They are involved in an accident that day in which they are at fault, and a claim of $10,000 is made. The insurance company is obligated to pay out the claim despite having yet to discover the checking account used to make payment has no money, is closed account or did not belong to the insured. The insurance company faces a substantial loss with potentially no way to recover the initial premium payment.

All of these issues could be discovered at the point of enrollment with the client using a Checking Account Owner Authentication Service System. This could be face to face or in an Internet environment.

For less than $1 per inquiry these risks can be significantly reduced.

An AOA system also validates other data elements such as date of birth, drivers’ license numbers, phone numbers, etc. There is no other service available today that matches and validates data against records held at the customers Financial Institution.

Should a simple data entry error occur at the onboarding stage, your business will have to not only discover the error, but contact the customer, usually multiple times [typical success rates of contacting and getting correct information are about 5%]. This means additional admin costs and friction points for the customer. Client’s have been lost because of the failure to be able to gain the all important checking account information.

The friction points can be avoided by employing a Checking Account Owner Authentication Service System.


  • Reduce unauthorized access to customer accounts
  • Eliminate the need for account-owner login credentials
  • Improve customer experience and reduce abandonment rates
  • Reduce unauthorized and administrative ACH and check returns
  • Reduce Account Take-over risks

False positives can also be reduced or eliminated by providing additional customer intelligence around business and consumer names: birth dates, nicknames, maiden names, typos, or other data entry errors.

Costs range from .80-$1.25 with higher volume clients getting custom quotes.

Contact AgilePayments now to learn more about Checking Account Owner Authentication Service