How to get a verified coinbase account
Anyone who has been a long-time user of Coinbase knows that the cryptocurrency startup has not exactly always made it easy to buy Bitcoin. Nonetheless,
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there are methods one could use to verify a Coinbase legitimate checking account and if the user is the authorised party to the account. Let’s discuss few of these ways. Just try to understand the ways and you are good to go.
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1) ACH Prenote
The traditional way to verify a checking account is to perform an ACH (Automated Clearing House), Prenote. A Prenote is a zero-dollar transaction that is sent to a bank through the ACH network to verify the accuracy of routing numbers and account numbers and in some cases the name of the account holder. If the account data was incorrect, the Prenote would be rejected and the sender can then reject the account for use as an ACH. The Prenote therefore has limited utility for most use cases andis used generally to verify checking accounts for Payroll receipts. This can also take up to 5 business days.
2) ACH Test Transaction (challenge-response verification)
The problem with a Prenote is that it does not actually verify if the person presenting the bank account is actually authorised to use the account (eg. has login and passwords of the account). Thus, it is more common today to see a small value sent via ACH, usually below $2.00 and then to have the customer verify that if they are the true account holder, they would know the amount and perhaps other attributes of the transaction. Companies like PayPal have used this technique for a number of years. This can also take up to 5 business days.
3) Grant Temporary Online Bank Account Access
The speed of both approaches are unacceptable with a service like Coinbase. Days of waiting for a checking account verification could mean 60% losses (or gains). Coinbase allows for the ACH Test Transaction method but it will suffer from potential delays. Coinbase created the Instant Account Verification system to address the speed issue directly.When you are at the ACH confirmation screen you are presented with a choice to enter the online ID and password to your bank account, and Coinbase verifies your bank account instantly by logging into it. This Is performed by secured (SSL) software on Coinbase computers that logs into the online access to your bank account and looks for a number of attributes that confirm your identity. Coinbase, for a number of reasons does not disclose exactly what metric they use to confirm your checking account, but it seems like they only view data and do not send or receive any funds. Coinbase takes great pains to explain that they do not store the online ID and password and that they use the same security protocols that are found at your bank. They also explain that no data transactional/financial from your account is scanned or stored.
Still on: How To Get A Verified Coinbase Account In Nigeria
At some level one would need to trust Coinbase with performing this type of verification.It would be encouraged to create a temporary password for this one-time event and to change it as soon as the account is confirmed. It is important to note that Coinbase ostensibly will performing a bank-like functionality and as a customer of the service you will be trusting Coinbase with money. In the view of many Coinbase customers, they are satisfied with trading a one-time temporary access to an online bank account for a faster transitions.
Granting temporary and/or permanent access to an online bank account is not at all a new concept and there have been companies doing this since the late 1990s. There are a number of proposals that would do a far better job verifying a checking account, some are over 10 years old. There are many reasons the ACH system is slow and one reason is the banks that control it want it to be this way.