micro-deposits are used as one option for verifying accounts used in ACH transactions. Account validation is an important tool for businesses who originate 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.
A company sends one or two very small credit ACH transactions (and sometimes a debit to remove the money) to their customer. The customer informs the company what amount(s) were deposited to and debited from their account. This verifies the account number and ensures the customer has the ability to view the account.
The Originator Depository Financial Institution (ODFI) will have an account setup to initiate the credits and debit against the proposed remote account. The configuration is specified via
ODFI_* environmental variables (like
ODFI_ACCOUNT_NUMBER) and will bypass its own verification.
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.
Two metrics are exported:
micro_deposits_confirmed which are counts of each respective action performed by clients.