MicroBilt is a leading provider of alternative credit data and risk management solutions for businesses, financial institutions, and consumers. The company offers a wide range of products and services to help organizations make informed decisions about creditworthiness, identity verification, fraud prevention, and debt recovery. Narmi uses Microbilt's Risk Verify Database product for manual account verification of ACH funding transactions in the Consumer Account Opening and Business Account Opening products. RVD is an advanced data system that can flag common potential return risks for ACH debits by analyzing 2.3B real-time consumer transactions and providing a rating. Microbilt is compliant with NACHA's WEB Debit Account Validation Rule and a NACHA Preferred Partner for Bank Account Verification.
Microbilt Validation Process
Every ACH funding transaction will go through one of two validation/verification options, and it varies by how the account information was provided during funding: Instant Account Verification (IAV) or manual account verification. With IAV, the applicant enters their banking credentials to get instantly verified using our partner MX. With manual account verification, the applicant manually enters their routing and account numbers, and only this data is sent to our partner, Microbilt, for verification. The Microbilt validation occurs after the applicant passes identity decisioning. During the validation process, Microbilt:
Verifies the bank routing number is valid and active in the US
Ensures the structure of the account presented matches known structure(s) used by your institution
Alerts if the account has been reported as closed or invalid
Microbilt stores the routing and account numbers data indefinitely to help increase its network of validations/checks.
Microbilt Statuses
If the applicant manually enters their account information, we check the account details with our partner Microbilt, and they will return one of the following statuses:
Accept – Allows the transaction to continue; the transaction moves to “Pending” in Narmi Command's AO ACH Manager
Warning – Marked as a lower risk for review; the transaction moves to “Review” in the AO ACH Manager
Decline – Either auto-rejected or marked as a higher risk for review, depending on your institution's settings. The transaction moves to “Review” or “Reject” in AO ACH Manager. Go to Narmi AO ACH Service Configuration for more information.
You can view the Microbilt status in Narmi Command > Transactions > ACH Manager > Account opening. Select an applicant to see the transaction detail. The Microbilt status displays in the Account validation status field.
The Account validation status field in the transaction detail may display one of the following statuses:
Warning (Account Structure) – Account identified as a suspicious account format
Note: During account opening funding, the destination account number has not yet been created in the core; therefore, the destination account number shown in the transaction detail is only a placeholder. Additionally, the destination account number is not used in the account validation process for Narmi Grow ACH transactions. Since the source account information is manually entered, we perform validation on the source routing number and source account number.
As a result, the "Account Structure" warning may indicate that the manually entered source account number does not match the expected format for the specified financial institution.
Warning (Insufficient History) – Account does not have a reported history or returns for Account Closed, Invalid Account, No account found, or Unable to locate. The routing number and account format have been verified, and there is no known transactional history on the account. Transactional history is determined by a new field in the database based on the first-seen date in RVD.
Decline (Routing number is invalid) – Invalid bank routing number
Decline – Accounts reported as Closed in the last 3 years
Decline – Account reported as invalid/no account or unable to locate account
Accept – Account does not have a reported history or returns for Account Closed, Invalid Account, No account found, or Unable to locate. The routing number and account format are verified, and there is known transactional history on the account. Transactional history is determined by a new field in the database based on the first-seen date in RVD.
For transactions that return Warning and Decline, your staff users will have to decide whether to approve or reject them. If a transaction is rejected and the applicant has funding attempts remaining, they receive an email prompting them to re-enter their funding information. Doing so will trigger a new transaction. If a transaction is rejected and the applicant has no remaining funding attempts, their application is rejected, and they receive an email notification. To configure funding attempts, go to Narmi AO ACH Service Configuration.
For more information on Narmi AO ACH Service, go to About Narmi AO ACH Service or ACH Manager for Account Opening.
Optional Name Validation
Your institution has the option to enable Microbilt name validation in addition to routing and account number validation. This feature helps verify whether the applicant is the rightful owner of the account by matching the primary and joint applicants’ names against the name associated with the funding account, based on past transactions in the Microbilt database. When the names do not match, the ACH transaction is sent to manual review for decisioning by your staff. To enable name validation, please contact your Narmi Relationship Manager.
Once an application has been run through Microbilt for name validation, there are four possible outcomes:
Full match – The first and last name matched. For joint applications, both the primary and joint applicants matched.
No match – The first and last name did not match. For joint applications, neither the primary nor joint applicants matched.
Partial match – Either the first or last name matched. The details in AO ACH Manager display which name matched, e.g. “Partial match (Last name only).” For joint applications, a partial match also indicates that only one of the the applicants matched.
Data not available – No data was found to determine a name match or mismatch.
If Microbilt returns No match, Partial match, or Data not available, the transaction moves to “Review” in the AO ACH Manager for decisioning by your staff.
Note: AO ACH Manager will not display the name associated with the funding account in Microbilt, only the matching result.
