What is a Real-Time Balance Check?

What is a Real-Time Balance Check?

Information

Title
What is a Real-Time Balance Check?

Summary
Real-Time Balance Check is an add-on feature to Instant Account Verification (IAV) that allows businesses to retrieve the current and available balance of a bank account in real-time.

How Balance Check Works
Balance Check is a key component of open banking, a system where third-party providers (TPPs) can access customer financial data— with the customer's consent—through APIs provided by traditional financial institutions. It enables businesses to check that a bank account has sufficient funds before initiating a transaction, reducing the likelihood of payment returns and associated costs.

Key Features and Benefits of IAV and Real-Time Balance Check

  1. Real-Time Data: Balance Check retrieves the real-time current and available balance of a bank account. This data helps businesses make a decision about whether or not to initiate a transaction and helps minimize the risk of returns.
  2. Improved User Experience: IAV eliminates the need for slower, traditional bank account verification methods like micro-deposits, which can cause delays and lead to user drop-off. With IAV, users can continue through the payment flow without interruption.
  3. Lower Customer Service Burden: IAV helps reduce the need for customer follow-up and troubleshooting, which are often required with bank account verification methods like micro-deposits.

Requirements for Implementation
To implement Real-Time Balance Check, a business must first have Instant Account Verification (IAV) enabled. IAV checks that the account is valid and active before Real-Time Balance Check can retrieve the current and available balance.

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