Customer account verification should be considered mandatory from a commercial point of view for companies in both B2B and BC sectors. To better understand how that simple step benefits both the seller and the buyer, the following points should be helpful.
Avoiding Fraud and Confusion
When a customer overspends money that they either do not have in their bank account, or exceeds their maximum allotted credit limit, the transaction should fail. However, that is the most ideal outcome, and it is not what happens in all such instances. Sometimes, the transaction will go through, and the purchase will be shown as completed.
After a variable amount of time, the transacted amount will most likely be reversed back to the original bank account. Once this happens, the business’s own bank will charge them reversal fees. The customer will also likely be charged fees, but it’s the seller who will be at a complete disadvantage at that point.
Technically, the customer got the product for free, minus only the fees charged by their bank. The seller on the other hand,
- Does not have the product.
- Does not have the payment for the product.
- Has to pay their own bank’s transaction reversal fees.
Even if the customer or client is genuine, sorting through the mess can be bothersome and frustrating. On the other hand, if it was an intentional fraud, that is simply one of the worst scenarios to be in as a business. Both intended fraud and unintended technical issues can be eliminated by implementing a state-of-the-art bank verification system that verifies and authenticates potential/present customer bank account information, prior to every transaction. The bank verification eliminates the risk of fraudulent transactions and customer/client mistakes from the process altogether.
A customer may not have sufficient funds in their bank account to pay for an upcoming auto-debiting instalment/bill/subscription fee charged by your business. You bank verification system will alert you about the pending overdraft, so that you can contact and alert the customer about the same. Genuine customers will not wish to pay overdraft fees if they can help it.
Building Better Client Relationships
Whether it’s a single consumer or a large business client, no one likes an interruption when they are in the process of purchasing something. Failed transactions are, therefore, not the best way to build good customer relationships in any trade. Given that most transactions fail either due to wrong information or because of insufficient balance/credit, advanced bank verification can easily eliminate any such issues from escalating beyond the initial mistake.
If the credentials provided are wrong, your bank verification system will alert the seller before an attempt at processing the transaction is made. If the customer’s bank account or credit account does not have the necessary balance, the same will be conveyed to the seller in the same manner. Customers will get the chance to rectify their mistakes in the provided information and/or offer a different mode of payment, instead of incurring the inevitable overdraft or NSF fee. As long as the customer is genuine, that can only create positive associations with your business.