Explained: Why It Is Important To Get Bank Account Verification Done For Online Transactions
Online transactions have become the go-to option for many people across the country. It is an extremely popular payment method that is used for business and personal financial transactions. The fast, easy, and effortless method has made online transactions so popular. They are super convenient and secure as compared to many other payment methods. They are more reliable than bank payments where you need to stand in line to receive or deposit money into an account. All apps that offer online banking or transaction services require bank account verification as a part of setting up an account and making transactions.
How do online transactions work?
Online transactions can be done through various third-party apps as well as the popular BHIM pay UPI app. These apps can be downloaded from Google Play and other app stores. Online transactions connect bank accounts or users to conduct online cashless transactions with a click of a button. The money is directly credited or debited from the bank accounts without placing the funds in a wallet on a transaction app. Here are a few payments apps that are popular in India for online payments and transactions:-
- Google Pay
- BHIM Pay
Users simply have to link their bank accounts for the apps to process their payments. Verification of the bank account and its registered phone number is conducted to make sure everything is safe, secure, and accurate.
Why is bank account verification necessary?
All online transactions or payments apps will require users to have their bank account to be verified. Whether you open an account on apps for personal use or set up a merchant account, you will be required to verify your bank account for safety and security purposes. Here are a few reasons why it is necessary to have your bank account verification done for online payment:
● Determining the genuineness of the user
Bank account verification allows the third-party app to confirm that you are a genuine person who is trying to set up an account on the app.
Verification on apps is a way to confirm that it has linked you to your correct bank account so that transactions can be done properly. For online transactions, the verification of UPI ID and bank accounts is important because the apps need to be sure they are sending and receiving the payments in the correct account.
● Protection from frauds
Bank account verification is the ideal way to avoid fraudulent activities which may compromise someone’s bank account and financial information.
● Smooth processing of payment by banks
If bank account verification is not done properly, the bank won’t be able to process payments even if the third-party apps show success in transactions.
● Confirming virtual payment address
For merchant accounts especially, one must always verify one’s bank account to confirm one’s Virtual Payment address and make sure all transactions run smoothly.
To verify a bank account instantly and do bulk bank account verification, check the correctness of a bank account as per the provided details. You may also use bank account verification for your small business.
Why are online transactions popular?
Online payments are currently the preferred choice of millions of users around the world. In recent times, there has been a big boom in users of online payment apps which were not available to us a few years back. However, almost every individual has an online payment app which they use to send and receive when necessary. Here are a few reasons why online payment has so quickly become the ideal payment method for so many people:
Online payments are safe and easy to make. It only requires a few clicks to make payments. Anyone can easily open an online payment account on these apps anytime they want.
They are password protected so only you can make payments from the app when you need them. Moreover, essential steps are taken to protect you from payment frauds or scams.
Online transactions can be done from anywhere and anytime as long as you don’t meet the daily transaction limit. They do not require you to wait in long lines at the bank for financial dealings.
They are fast at crediting and debiting money from bank accounts during online transactions.
● Ease of tracking
You will be able to keep track of your transactions on the apps you use for making payments.
Online payments have been on the rise and have made people open up new accounts since it’s becoming the preferred method of payment for many people. Business dealings can be easily done through online payment apps and it is a great help in emergencies when you need to send money to someone or pay someone for goods and services. Since cashless transactions are being advocated so much especially during the pandemic, people have been opting for this method more frequently. Bank account verification is a necessary step in online payments as it makes sure your money is deposited and debited safely and your financial information is not compromised in any way. Whenever you conduct online payments make sure you and the other person or business have a verified bank account to avoid your chances of being scammed.