Best Of

We found the best ways to verify routing and account numbers is by using either a voided check, or a bank confirmation on bank letterhead. Third party verification helps avoid mistakes or misrepresentations. (When we first began using ACH payments, around 10% of applicants made errors in bank names, routing or account numbers. Yikes!). We pay mostly the same groups annually so input it directly into our bank's ACH system to be saved for each payee. Each time we receive an application, we ask applicants to confirm that the bank account hasn't changed. If you have many new grantees you'd have to find a different method.

We've had a few issues with large organizations, such as schools. Some departments ask for a paper check due to the time it would take for them to receive credit for the ACH from their admin. One asked that we call a specific employee so that the organization would even accept the ACH funds on the scheduled date. So you'll probably still be making some payments by check.

Good luck!

Bonnie

@DaynellMarbury Great question

With some of the newer technologies available, in general I've seen organizations take one of three approaches:

1. User submits routing and account information to the foundation, then use microdeposit(s) or a solution like Plaid to verify
2. User submits routing and account information to the foundation, and a representative from the foundation contacts the user over a different channel (ie phone call) and verifies over the phone
3. Foundation moves towards a solution that is more self-service, for example, Bill.com or possibly through their banking app, which eliminates the need for verification because the user has entered it directly

I've worked with a lot of foundations over the past 3-4 years, so assuming BoA still requires verification, the most common solution I've seen is probably #2 since it is the easiest, cheapest, etc — just requires manual effort every time a new grantee is added or changes their bank account etc.

Hope this helps!

Justin