Account Validation

In order to validate Depository objects and transfer money PayGate needs to verify the user is authorized to access the Depository. This typically involves micro-deposits (sending two debits under $1 to the account and having the user confirm these amounts) followed by a credit from the account to balance the accounting.

Micro Deposits

micro-deposits are used as one option for verifying accounts used in ACH transactions. Account validation is an important and required aspect of originating ACH credits and debits. Using an incorrect routing and transit number and/or account number for the recipient of an ACH transaction can cost a business both time and money.

PayGate submits small deposits, credits the balance and has the user confirm the amounts manually. This is only required once per Depository. To setup the funding account for these deposits the following configuration options for paygate are below and are all required:

ODFI Account

The Originator Depository Financial Institution (ODFI) will have an account setup to initiate the credits and debit against the proposed remote account.

Environmental Variable Description Default
ODFI_ACCOUNT_NUMBER Account Number of Financial Institution which is originating micro deposits. 123
ODFI_ACCOUNT_TYPE Type of ODFI account used for micro-deposits (Checking or Savings) Savings
ODFI_BANK_NAME Legal name of Financial Institution which is originating micro deposits. Moov, Inc
ODFI_HOLDER Legal name of Financial Institution which is originating micro deposits. Moov, Inc
ODFI_IDENTIFICATION Number by which the customer is known to the Financial Institution originating micro deposits. 001
ODFI_ROUTING_NUMBER ABA routing number of Financial Institution which is originating micro deposits. 121042882

Allowed Attempts

Each Depository has a maximum number of attempts for verification. This is set as an audit trail and to prevent endless attempts as a result of brute forcing values or overloading paygate's resources. By default the maximum allowed attempts for a Depository is 5.


Two metrics are exported: micro_deposits_initiated and micro_deposits_confirmed which are counts of each respective action performed by clients.

Instant Account Validation

Instant Account Validation is a technique used to approve Depository objects faster than the typical 2-3 business days with micro-deposits.


We are currently working on integrating Plaid to use for account validation. Please see the #paygate channel in slack for discussion.