Experian and JPMorgan Push Account Checks Into Payment Workflows

JP Morgan Chase and Experian are rolling out new real-time account verification tools that change how businesses handle transactions. As faster payment methods become the norm, the window for catching fraud is shrinking. These new tools verify the identity of the account holder and check for sufficient funds before a payment is processed, rather than after the fact. For retailers and service providers, this means less time spent chasing failed payments or dealing with expensive chargebacks. By integrating these checks directly into the payment workflow, you can instantly confirm if a customer’s bank account is valid and active. This is particularly important for businesses offering financing, recurring billing, or ACH payments. The shift moves security to the 'front door' of the transaction. Instead of waiting days for a payment to clear or bounce, you get a signal immediately. This reduces the risk of 'first-payment default' where a customer signs up for a plan using a drained or closed account. For high-ticket industries like home improvement or automotive, this adds a critical layer of protection against sophisticated identity theft and payment fraud.

Source: PYMNTS

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