What Is a Micro Deposit and How Does It Work?
Understand micro deposits: what they are, how they verify financial accounts securely, and their simple process.
What Is a Micro Deposit and How Does It Work?
A micro deposit serves as a fundamental method for confirming the authenticity of financial accounts. This small transfer of funds plays a role in establishing that an individual has legitimate access to a bank account they intend to link with a service or another financial institution. It forms a common procedure in the digital financial landscape, preceding various online transactions and account setups.
Understanding Micro Deposits
Micro deposits are small, temporary sums of money, typically less than one dollar, which are transferred into a bank account. Often, these involve two distinct, unique amounts, such as $0.15 and $0.23, rather than a single fixed value. By requiring the account holder to verify the exact amounts, the system confirms that the person initiating the link has access to the bank statement for that account.
This method acts as a security measure designed to prevent unauthorized linking of bank accounts. If someone attempts to link an account they do not control, they would be unable to provide the precise deposit amounts, thereby preventing fraudulent connections. The temporary nature of these deposits means they are usually reclaimed by the sending institution shortly after verification is complete, ensuring no net change to the account balance.
The Verification Process
When initiating a process that requires linking a bank account, such as setting up direct deposit or connecting to a financial application, the service typically begins the micro deposit verification. The platform sends two distinct, small deposits to the specified bank account. These deposits usually appear in the account within one to three business days. It is important to remember that these are not large sums, often ranging from a few cents to less than a dollar.
Once these micro deposits are posted, the user must locate them on their bank statement. This can be done by checking online banking portals, mobile banking applications, or reviewing a physical bank statement. The specific amounts of each deposit are crucial for the next step.
After identifying both amounts, the user returns to the platform where they initiated the linking process. There, they are prompted to accurately enter the exact amounts of the two micro deposits. Correctly entering these values completes the verification, typically allowing the linked account to become fully active for transactions. While the deposits usually appear within a few business days, users generally have a window, such as 15 to 30 calendar days, to complete the verification before the process may need to be re-initiated.