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Identity Verification for ACH Bank Accounts Overview

Identity Verification is a one-time security check required for ACH-enabled bank accounts used to make or receive payments through Spend.

This verification helps confirm account ownership and ensures compliance with banking industry requirements. Once successfully completed, the verification status is saved and does not need to be repeated unless otherwise required.

Why is Identity Verification Required?

Identity Verification is being implemented to comply with updated NACHA requirements that apply to banking and financial platforms.

As part of these requirements, users who utilize ACH payment methods must verify their identity before certain ACH-related activities can be completed.

How Does This Impact Spend Users?

Users who add or use ACH bank accounts in Spend may be prompted to complete a one-time identity verification.

The verification process is powered by Plaid and requires the user to provide:

  • Legal name associated with the bank account
  • Email address
  • Phone number

Once verification is successful, the account can continue to be used for ACH transactions.

Guardian Verification Flow

Step 1: Navigate to Payment Methods

Go to Payment Methods and either:

  • Add a new ACH bank account, or
  • Select an existing ACH bank account

A Verify Identity button will appear for any account that requires verification.

Step 2: Enter Verification Information

Select Verify Identity and provide:

  • Legal name associated with the bank account
  • Email address
  • Phone number

Step 3: Submit Verification

After submitting the information, Spend will display the verification result.

If Verification Fails

If the information entered cannot be validated, an error message will appear and the user will be asked to try again.

Note: Plaid compares the information provided and requires a sufficient match across the submitted details in order to verify identity.

What Happens if a Guardian Does Not Verify?

Users will be unable to complete certain ACH-related actions until verification is successful.

This includes:

  • Making ACH payments
  • Authorizing AutoPay
  • Updating ACH payment methods

If verification is required, an error message will be displayed prompting the user to verify their identity first.

Group & Program Verification Flow

Step 1: Add or Select a Bank Account

Navigate to the Banking or Program tab and add or select a linked bank account.

A Verify Identity button will appear below any account requiring verification.

Step 2: Enter Verification Information

Select Verify Identity and provide:

  • Legal name associated with the bank account
  • Email address
  • Phone number

Step 3: Submit Verification

After submitting the information, Spend will display the verification result.

If Verification Fails

If the information cannot be validated, an error message will be displayed.

What Happens if a Program Account Is Not Verified?

Users will be unable to initiate external transfers from an unverified bank account.

If verification is required, an error message will appear directing the user to complete Identity Verification before proceeding.

 

Snap! Spend is a financial technology company and is not a bank. Banking services provided by Thread Bank; Member FDIC. The Snap! Spend Visa Debit is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. 

Your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. 

You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/.  Please contact customerservice@thread.bank with questions on the sweep program.