Today’s consumers move fast. With all of the computing power of a desktop tucked away in nearly every pocket, today’s businesses can’t delay basic transactions. The longer it takes to make a purchase from one vendor, the more likely they are to finish buying somewhere else. Amazon may have pioneered the one-click buy option, but it is now the industry standard. Email accounts, social media profiles and dozens of other sites offer instant verification, and that needs to extend to payment processing and financial organizations.
Types of Account Verification
Account verification is intended to do several things, but the most basic is to ensure the identity and capability of the account holder. Before extending a loan, a financial institution must verify that the applicant is who they say they are, and that they are credit-worthy for the requested loan. When making a purchase, account verification involves qualifying payment information to reduce the risk of fraud. These verification processes take time, unless a business has instant account verification technology in place.
Benefits of Instant Account Verification
Instant account verification is becoming a necessity in today’s increasing rapid response society. No customer wants to hear about a three-day shipping guarantee that doesn’t start for a week while waiting for payment verification. Instant account verification gets rid of long wait times and allows transactions to post quickly and securely, without giving businesses another set of risks. For a financial institution, instant account verification means no need to wait for days or weeks while gathering documentation. That leads to more closed deals with good prospects and fewer dropouts. It also means lower risk. After all, a third-party verifies the information provided on an application, all in an instant. Links to personal accounts let lenders create a better financial picture, leading to fewer bad loans.
For retailers and service providers the benefits are even more direct. Faster checkout and processing means better cash flow and more customers. Amazon has already gathered more than 40 percent of the American e-commerce market, largely due to fast shipping and near-instant checkout times. To capture a slice of the rapidly expanding e-commerce pie, retailers always need to stay competitive, and Amazon is setting the competition bar.
Myths and Misconceptions about Instant Account Verification
Businesses may hesitate to implement instant account verification for a number of reasons. Won’t it lead to more chargebacks or fraud? What about the cost? If it takes too long to implement, won’t it be obsolete before it is up and running? While these fears are reasonable, they don’t apply to instant account verification services. Because these services act as APIs, they integrate with existing POS systems to provide a next-gen service. That means obsolescence is not an issue as the software will update along with technology. Cost is minimal when compared to a capital investment or the need to upgrade legacy technologies. Even fraud is less of an issue with instant account verification, since a third-party is taking responsibility for authentication.
Instantly Upgrade Capacity with Instant Account Verification
When implemented properly with the right payment processing partner, instant account verification can lead to a shorter sales funnel, faster payment processing, and a better user experience. While no upgrade comes free, the cost of adding instant account verification is minimal, and benefits can rapidly outweigh the initial investment.