At Orum, we’re obsessed with all things money movement. But you can’t move funds from one bank account to another without confirming quite a few crucial things — including that the account the money is being sent to is open, able to accept funds, and belongs to the person or business you intended.

It sounds straightforward, but in reality, it’s a detailed process that can involve as many as three tiers of verification – and a process that prior to Orum’s first-of-its-kind solution, was plagued by antiquated technology, flawed probabilistic scoring, and outsized pricing. 

Of course, accurately confirming payment details is crucial to protect people and businesses. But since this process historically has been outdated, slow, and unreliable, failed payments cost the global economy over $100 billion each year

That’s why Orum recently launched Verify, a patent-pending, first-of-its-kind technology that verifies bank accounts in 15 seconds or less.

What are the different tiers of bank account verification?

Open and valid

The first tier of verification confirms whether a bank account is both open and valid. “Open” status signifies that a bank account is both active and in good standing (meaning it hasn’t been frozen for fraud investigation or closed for any reason). “Valid” means that the supplied banking details, like the account and routing numbers, are accurate and exist in the banking system.

Traditionally this meant a business was either:

  • using ACH microdeposits, waiting 3-5 days to see if those microdeposits went through, and then hoping the end user would take the time to find those microdeposits and report them back to the business correctly (a process that is exhausting to read, let alone execute effectively); 
  • asking users to track down and enter their login credentials, which is neither ideal nor possible for every business use case, or
  • relying on offerings that use batched, historical data to score the level of risk. Often these so-called solutions are just the same old offering from a group of banks that’s been repackaged and dressed up under a different brand name. 
Orum’s Verify, by contrast, determines whether a bank account is open and valid within 15 seconds. Verify covers 100% of all U.S. bank accounts through RTP, FedNow, and Same Day ACH, leveraging real-time information sent via those payment rails for instant and reliable data 24/7/365. Plus, Verify automates everything – meaning end users do not need to be involved in the verification process, removing customer friction.


Once a bank account is confirmed to be open and valid, the next tier for some businesses is verifying that the person providing the account information is indeed its owner and in control of the bank account.

Historical methods of confirming ownership verification have been manual or slow: matching personal information such as name and address, comparing the signature on file at the bank with one provided during the verification process, asking security questions, etc.

We’re thrilled to now deliver Ownership through Verify. We do it better and differently, using two-factor authentication. Orum’s Verify API generates a randomized 4-digit code and automatically sends the code to the bank account being verified as part of the standard account statement descriptor. To confirm ownership and show they can access the bank account, the user simply confirms the code via email. 

That proof of access is a strong indicator of ownership. It proves more than checking that the name on a bank account matches the name provided. And it’s especially useful in B2B transactions, where it’s important that the end user has access to that specific bank account.

This second verification tier isn’t required for every use case, so Verify users can turn this Ownership tier on and off programmatically as needed.

Account Ownership via Name Match (Coming soon to Verify!)

Account Ownership via Name Match confirms that the name provided by the person or business being verified is indeed associated with the bank account.

Some systems require an exact match between the name provided during the verification process and the name on the bank account, while others may allow minor discrepancies like nicknames (think “Nick” vs. “Nicholas”) or abbreviated forms of business names. Reconciling discrepancies usually involves requesting additional supporting information from the account holder. 

As we’ve said, Orum believes proving access to an account in the Account Ownership via Name Match tier is generally more effective and clearer proof — but there are some use cases in which customers want to add Name Match. So we’re rolling out this third tier in Q1 2024, with Name Match capability available at an additional cost per verification.

Verification is crucial for safe payments

At Orum, we feel strongly that payments are only as safe as the authentication of the recipient’s account—and that optimized money movement can reduce the time it takes for people and businesses to access their funds.

That’s what spurred us to create Verify: With instant bank verification, before payment is initiated you’ve confirmed in 15 seconds that the recipient’s account is open, valid, and ready to receive the funds. You can confirm Ownership. And soon, you’ll be able to check for Name Match.

Verify leverages data that’s up-to-the-moment 24/7/365, is days faster than traditional verification, and is safe and frictionless for your customers.

Orum can get you set up with Verify in as little as two days without costly bank integrations or prolonged compliance reviews Verify will replace antiquated and expensive verification solutions—plus, Orum’s API solution now gives you access to even more major payment rails, including RTP, FedNow, Same Day ACH, ACH, and Wires.

Ready to learn more?

Are you interested in instant, accurate, and efficient account verification? Schedule a demo today to see Verify in action.

Ready to move?Let’s talk.