Relay may ask you to verify external accounts involved in ACH transactions to confirm ownership and prevent fraud, most often on new, large, or dormant connections.
Why does Relay verify ACH transactions?
Verification confirms that the external account moving money to or from your Relay account belongs to you or to a party authorized to send funds. Thread Bank, Member FDIC, requires this review for new or dormant external connections, large transactions, and connections where the account holder's name does not match your Relay account, so that unauthorized ACH activity is caught before funds move.
When does Relay request ACH verification?
Relay requests verification when an ACH transaction involves an external account that meets one or more of the following conditions:
The external account has just been connected to your Relay account (new connection)
The external account has not been used for an extended period (dormant connection)
The transaction is significantly larger than your typical activity on that connection
The account holder's name on the external account does not exactly match the name on your Relay account
What documents does Relay accept for verification?
Relay accepts one of the following documents to verify an external account involved in an ACH transaction:
Bank statement. A statement downloaded directly from the external bank's online banking portal, showing the account holder's name and account number matching the transaction details. Screenshots, JPEGs, and documents with masked or edited information are not accepted.
Bank verification letter. If a downloaded statement is not available, a letter from the external bank displaying the bank's official seal and the account details clears verification.
Proof of business ownership (when the external account is under a different business name). Submit the EIN letter or the Articles of Incorporation naming you as the owner of the business that holds the external account.
Proof of authorized use (when the external account is under a different individual's name). Submit a bank statement for the external account and add that individual as a team member on your Relay account.
How do I submit verification documents?
Upload your documents through the secure link Relay sends when verification is requested. If you have not received a link, reply to the email or in-app message from Relay's compliance team with your documents attached as unedited PDFs downloaded directly from your bank.
How long do I have to complete verification?
You have 1 business day from the time Relay requests verification to submit your documents. Transactions can be held or reversed if verification is not completed within that window.
What if my external account is under a different business name?
Submit the EIN letter or the Articles of Incorporation that name you as the owner of the business holding the external account. This confirms your authority to move funds between the two businesses.
What if my external account is under a different individual's name?
Submit a bank statement for the external account, then add that individual as a team member on your Relay account. Both steps are required so that the ACH transaction can be tied to an authorized party on the Relay side.
Common questions about ACH verification
What if the account number on my statement is masked? Submit the full downloaded bank statement rather than a screenshot. Relay's compliance team can match the statement to the transaction record even when the account number is partially masked, provided the statement is unedited and shows the account holder's name.
Can I redact information on my document before sending it? No. Once a document has been edited or redacted, Relay cannot authenticate it. Submit the original, unedited document downloaded directly from your bank.
My bank only provides paper statements. What should I do? Request a certified letter with an official bank stamp from your bank branch. This qualifies as a bank verification letter for Relay's verification process.
Is ACH verification a recurring requirement? No. Verification is a one-time process for each new or dormant external account connection. Once an external account has been verified, subsequent transactions on that connection do not require re-verification.
My external account is new and has no statement yet. What can I submit? Submit a Bank Verification Letter from the external bank, or a bank confirmation email showing the account holder's name and account number.
How do I cancel a pending ACH transfer during verification? Contact the external bank directly to cancel the transfer. Relay cannot cancel an inbound transfer from an external bank on your behalf.
What happens if I want to close my Relay account before verification is complete? Relay's compliance team must complete the verification review before funds can be returned to your external account. Closing your Relay account does not bypass this review.
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